Iraq and Saudi Arabia Losing Oil Market Share in Asia to Russian Crude: S&P Global

Shafaq News/ S&P Global Commodity Insights has revealed that Iraq and Saudi Arabia are witnessing a decline in their market share in Asia as India and China opt for more affordable Russian crude.

According to preliminary data, Indian refiners imported a record high of approximately 2 million barrels per day (bpd) of Russian crude in May. This surpasses the combined purchases of Iraq and Saudi Arabia and displaces supplies from the Middle East, Africa, and some US sources.

S&P Global predicts that these imports will make up around 40% to 45%, equivalent to 2-2.5 million bpd, of India's total crude oil imports. This is on the assumption that Russian crude remains competitively priced compared to alternative sources.

Similarly, China's crude oil imports from Russia hit a new record of 2.30 million barrels per day (9.71 million metric tons) in May, exceeding Saudi Arabia's 1.73 million daily barrels.

China's imports from Russia are expected to continue growing, supported by increased supplies of the ESPO Blend crude.

In May, China received 29 cargoes of the total 39, while India received the remaining 10, according to data from Kpler and Platts cFlow ship and shipping data, which track commodities.

Addressing this trend, OPEC Secretary-General Haitham Al-Ghais expressed no concerns, stating that "the market is open to all players."

Al-Ghais acknowledged Russia's prominence and significant role in the global oil markets, highlighting Malaysia and Asia as key importers. He further emphasized that the growing demand in the market accommodates all players.