Russia crude in tank, India steps up petroleum product exports to EU as region shuns Moscow

Source: The post is based on the article “Russia crude in tank, India steps up petroleum product exports to EU as region shuns Moscow” published in Indian Express on 13th March 2023.

What is the News?

India’s petroleum product exports to the European Union (EU) have grown notably over the past few months as the region weans itself off refined products from Russia due to the war in Ukraine.

What does the data show on India’s petroleum product exports to the EU?

In April-January, the EU accounted for close to 15% of India’s total petroleum product exports of 79 million tonnes, against 12% in the year-ago period.

India’s petroleum product exports to EU countries rose 20.4% year-on-year in the April-January period.

What is the significance of the rise in India’s petroleum product exports to the EU?

From the global oil markets perspective, suppliers like India are helping maintain a demand-supply balance, while preventing extreme price shocks. 

The EU does not want to buy crude as well as refined fuels and products from Russia. Countries like India, which is a major oil refiner are playing their part in bridging the gap by buying Russian oil on one hand and increasing supply of refined products to the EU on the other.

Note: India is a major refiner with an annual refining capacity of about 250 million tonnes. While it is also one of the top consumers of crude oil, India’s refining capacity is higher than its domestic demand, making the country a net exporter of petroleum products.

What is the West’s view on higher petroleum product exports to the EU?

Major Western powers like the US are comfortable with the rising supply of Indian refined products to Europe. This is mainly because, in their view, refiners in countries like India are ensuring that the global oil and refined products market remains balanced and adequately supplied.