India Refineries Turns To Nigeria As Russian Crude Oil Decline

Indian refineries are increasing crude oil imports from Nigeria, Angola, and Mexico as shipments from Russia hit their lowest level since January 2023, according to a report from Bloomberg.

The decline follows new sanctions imposed by the United States and the United Kingdom on Russian energy firms and oil tankers, disrupting Moscow’s exports to major buyers, including India, the world’s third-largest oil importer.

Shift in India’s Crude Oil Sourcing

Data from Kpler, cited by Bloomberg, indicates that India’s crude imports from Russia fell by 14.9% in February, averaging 1.4 million barrels per day. This drop comes after fresh sanctions imposed in January, targeting key Russian oil producers Gazprom Neft and Surgutneftegas, as well as 183 tankers involved in transporting Russian crude.

Despite these restrictions, Moscow has reaffirmed its commitment to global energy trade, with Russian First Deputy Energy Minister Pavel Sorokin stating:

“We are pragmatic. We value our relationships, and we will continue to supply the market. Our resources are competitive from an economic standpoint.”

Nigeria’s Rising Role in Oil Supply

With Nigeria ramping up crude production to 1.5 million barrels per day in January, the country successfully met its OPEC quota for the first time in three years.

Meanwhile, Dangote Petroleum Refinery in Lekki, Lagos, has taken a significant step in diversifying its crude supply sources, purchasing one million barrels of Algeria’s high-quality light sweet Saharan Blend crude. The move is expected to support Dangote Refinery in achieving its full refining capacity of 650,000 barrels per day.

As global energy dynamics shift, Nigeria’s growing crude production and exports present new opportunities in the international oil market.