- Many Gulf nations including Saudi Arabia are not only considered a big source of crude petroleum products but also refined fuels.
- United Stated or China are not behind the Middle East countries in producing refined fuels for the consumption of vast majority of the world population.
- The EU now needs alternative sources of diesel as it has cut off direct flows from Russia, previously its top supplier.
- The Kpler report also suggests that the Europe’s dependency from Indian imports is only likely to increase above 360,000 barrels per day, a little more than Saudi Arabia.
- However, this latest development is only likely to cost Europe more as it has cut off direct supplies from Russia. This also leads to more demand for Russian crude and more freight charges for Europe.
- Also, this will throw more challenges to local refiners in Europe who are unable to get access to cheap oil supplies from Russia.
India-Russia:-
- Russian crude arrivals in India are expected to exceed 2 million barrels a day in April, accounting for about 44 per cent of the country’s total oil imports.
- According to data from the Union Ministry of Commerce and Industry, Russia was the largest exporter of crude oil to India in February with a western price cap of USD 60 per barrel.
- Crude oil imports from Russia stood at US$3.35 billion, Saudi Arabia at US$2.30 billion and Iraq at US$2.03 billion in February.
