Daily News Analysis

Russian oil import at 8-month low in October as discount falls, OPEC share up

stylish_lining

Context:  According to an analysis of India’s official trade data by The Indian Express, Russia’s share in India’s oil imports (by volume) in October was 31.9 per cent, down from 34.8 per cent in September.

News:

  • Russian Share Decline: Russia's share in India's oil imports dropped to 31.9% in October, an eight-month low.This decline continued for four consecutive months from the peak of 44.7% in June.
  • West Asian Suppliers' Recovery: Iraq, Saudi Arabia, and the UAE collectively achieved a seven-month high share of 44.1% in October. Their combined share increased consistently month-over-month since June.
  • OPEC's Overall Share: OPEC's share in India's oil imports reached 50.2% in October, up from 49.1% in September. OPEC's share had dropped to 71.3% in April 2022 but has been recovering, led by Iraq, Saudi Arabia, and the UAE.
  • Discounts and Price Trends: Discounts on Russian oil declined due to factors such as oil price volatility, shipping charges, and competition from Chinese refiners.The discount on Russian crude, compared to Iraq, Saudi Arabia, and the UAE, was 5.7% in October.Discounts on Russian oil with respect to the average price of all OPEC suppliers fell to 6.9% in October.
  • Factors Affecting Russian Oil Discounts: Factors include high oil price volatility, shipping and insurance charges, competition from Chinese refiners, export cuts by Russia, domestic demand, and bypassing restrictions.
  • Importance of Discounts for India:
  • Even as discounts on Russian oil have shrunk, they remain crucial for India, which relies on imports for over 85% of its oil needs.Lower concessions help India save billions of dollars in foreign exchange.
  • Indian refiners saved approximately $3.3 billion in H1 FY24 through the purchase of discounted Russian crude.Savings are estimated to have risen to $3.55 billion for April-November.
  • Opaque Pricing of Russian Crude: Discounts on Russian oil remain unclear due to opaque pricing, with Russian crude bought on a delivered basis. Indian refiners compare the average landed price of Russian crude with the average price of oil from other suppliers as a marker for discounts.

India-UAE Joint Defence Cooperation Committee (JDCC) Meeting

The 13th Joint Defence Cooperation Committee (JDCC) meeting between India and the United Arab Emirates (UAE) took place in New Delhi. During this meeting, both nations reaffirmed their strong comm
Share It

Rural India

The Union Minister for Finance recently urged FinTech companies to expand their focus on rural India, not merely as a social responsibility but as a business opportunity.This comes amidst ev
Share It

Inclusivity of People with Disabilities in STEM Education

Current Situation: India has nearly 63 million people with disabilities (NFHS-5), but their representation in STEM fields is very low. Despite strong laws like the Right to Educat
Share It

National Handloom Day and the Swadeshi Movement

National Handloom Day Date: Celebrated every year on 7th August in India. Significance: Marks the launch of the Swadeshi Movement on 7 August 1905, which promoted indigenous indus
Share It

World Trade Organization (WTO)

Why in the News? India recently called for significant reforms at the World Trade Organization (WTO) during a high-level mini-ministerial meeting in Paris ahead of the 14th Ministerial Conferen
Share It

Money Laundering

A report submitted by the Finance Minister in the Rajya Sabha revealed that since 2015, the Enforcement Directorate (ED) has taken up 5,892 cases under the Prevention of Money Laundering Act (PMLA
Share It

Israel-US-Iran Conflict

Recently, tensions in the Middle East escalated dramatically as Israel launched “Operation Rising Lion”, a significant military strike aimed at Iranian nuclear infrastructure and balli
Share It

Philippines President’s Visit to India (2025)

In 2025, during the Philippines President's state visit to India, both nations elevated their bilateral relationship to a Strategic Partnership. The visit reaffirmed the 1952 Treaty of Friends
Share It

India's Participation in the 51st G7 Summit

India participated as an Outreach Country in the 51st G7 Summit held in Kananaskis, Canada in 2025. Key Outcomes of the 51st G7 Summit (2025): Kananaskis Wildfire Charter:
Share It

Quit India Movement (QIM)

India commemorates 8th August every year as Quit India Movement Day (also known as August Kranti Diwas) to honor the historic movement that demanded the immediate end of British colonial rule in I
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS