India has become the preferred destination for buying refined petroleum products not only in the US but also in many countries around the world. The main reason for this is that India is getting cheap crude oil from Russia (Russian Crude Oil). India is continuously moving towards becoming the leader of the petroleum market. Because of which a big country like America has to come towards India for refined petroleum products in front of India.
According to commerce ministry data, Russia exported crude oil worth $3.08 billion to India in November, making it India’s second largest exporter after Saudi Arabia. Meanwhile, the US imported oil products worth $588 million in November, reaching its highest level of imports in the current fiscal year.
The US imported petroleum products worth $3.62 billion in the eight months to November 30, a 23 per cent increase over the previous year and the highest in five years. Europe’s November imports of petroleum products from India also showed significant changes, with the UK, Spain and Romania significantly reducing imports from India, while Portugal, Belgium and Italy increased imports by 1,600, 535 and 17 times, respectively. The Netherlands, home to oil reserves, imported 45 percent more petroleum products than in October.
While imported crude oil is primarily used to fuel India’s economy, local refiners also sell refined products to overseas markets. India is a major Asian refining hub with an installed capacity of about 250 million tonnes per annum across 23 refineries.
The Netherlands was the largest importer of petroleum products including jet fuel worth $1.26 billion. The UAE was the second largest buyer of refined products from India, importing products worth $667 million in the month. According to Ajay Sahai, director general of the Federation of Indian Export Organizations (FIEO), the Netherlands has emerged as the top importer of oil products from India.
India, the world’s third-biggest oil importer, however, has said it will not join the effort to cap oil prices, which are currently kept 5 percent below market prices. The price cap comes at a time when Russia has emerged as one of India’s top sources of crude this year.