India says ‘no’ to Russian oil, Xi takes over, Putin scores big | World News

New Delhi: Over the past few months, Russia has offered deep discounts on oil after India reduced its purchases due to Western sanctions over the Ukraine war and pressures from a trade deal with the United States. China recognized this opportunity and acted quickly. Chinese refiners, known as Teapots, placed large orders to secure discounted crude oil. This has led to a surge in imports, which analysts predict could double in the coming months.

Data from Vortexa Analytics shows that Russian crude oil shipments to China could reach 2.07 million barrels per day (bpd) in February, up from 1.7 million barrels per day in January, while Kpler Data estimates imports could reach 2.083 million barrels per day.

In contrast, India’s Russian oil imports are expected to fall to 1.159 million barrels per day in February. This shows a large decrease compared to previous months. This gap highlights the changing dynamics of global energy trade, with China gaining an advantage as India steps back.

Discounts offered by Russia on Ural grade crude oil have been particularly positive for China; prices have fallen $9 to $11 per barrel below the ICE Brent benchmark for January and February deliveries. Extended shipments from Russia have proven to be more cost-effective than the short-haul supplies previously sent to India, although they travel further distances than ever before.

Chinese refiners see Russian crude as a safer alternative to Iranian oil due to ongoing uncertainty over the nuclear deal and the potential for U.S. military action against Tehran. Russian ESPO blend crude oil now competes directly with Iran’s light-grade oil, leading to China’s imports of Iranian crude falling from 1.25 million barrels per day in January to 1.03 million barrels per day in February.

A combination of heavy discounts in Russia, reliable supply and strategic calculations has allowed China to consolidate its position as the largest customer of Russian crude, while India is also readjusting its purchases due to geopolitical pressures and trade commitments.

The move highlights the changing energy landscape in Asia and the growing strategic partnership between Moscow and Beijing.