Increased demand for crude oil from China and India has allowed Russia to maintain its pre-Ukraine invasion production levels, according to the International Energy Agency (IEA).
China and India have emerged as the biggest consumers of Russian oil, according to The New York Times. China’s oil imports have increased by 28%, with Russia replacing Saudi Arabia as China’s largest supplier, while India’s oil imports have soared to more than 760,000 barrels a day.
imports of russian crude oil
india
pre-war: 30,000 barrels per day
now: 1,000,000china
pre-war: 1,700,000 barrels per day
now: 2,000,000— ian bremmer (@ianbremmer) June 27, 2022
In March, Russian crude oil sales to Europe dropped by 554,000 barrels a day, while Asian refineries increased their intake to 503,00 barrels a day, The NYT reported.
“Asia has saved Russian crude production,” Viktor Katona, an analyst at Kpler, told The NYT. “Russia, instead of falling further, is almost close to its prepandemic levels.” (RELATED: India Could Accept Huge Russian Oil Offer After US Announces Import Ban)
Russian oil has been sold at a steep discount to maintain production levels and avoid western sanctions for its invasion of Ukraine, according to The NYT. Despite these setbacks, rising energy prices have kept Russian oil profitable, which took in $1.8 billion more in May than it did in April, the IEA reported.
For Indian oil refineries, cheap Russian oil and high prices at gas stations means double the profits, The NYT reported. This refined oil is re-shipped to western nations like the U.S., U.K., France, and Italy, according to the Finnish-based Center for Research on Energy and Clean Air.
The IEA could not be reached immediately for comment by the Daily Caller News Foundation.
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