Government data showed today, Tuesday, that oil refineries in India increased their production capacity in April by 8.5% year-on-year, boosting purchases of Russian crude.
The data indicated that crude oil consumption by Indian refineries amounted to 5.27 million barrels per day in April 2022.
“Refineries buy Russian oil as cheaply as possible and then export diesel at high prices, mostly in Europe, where prices have jumped to astronomical levels, “said Refinitiv analyst Ehsanul Haq.
Diesel supplies have become a global concern since sanctions against Russia reshaped the fuel trade and sent international inventories to record lows.
Data from last week showed that oil imports from India in April were at the highest level in about three and a half years, mainly due to the increase in Russian crude oil flows to the world’s third largest oil importer and consumer.
India’s purchases of Russian oil have soared since the invasion of Ukraine in one moment in Western sanctions have prompted many crude oil importers to avoid trading with Moscow.
On the other hand, the data showed that the production of crude oil in India dropped about one percent to around 603,000 barrels a day, while natural gas production increased 6.6 percent year-on-year to 2.83 billion cubic meters.
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