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Russia’s market growth in India spells more worries for Nigeria
The growing pace of Russia’s oil in the Indian market is posing a further threat to Nigeria’s oil revenue, indicating uptake of Nigerian crude would diminish in the coming months.
Since Russia invaded Ukraine in late February, India’s imports of Russian oil have surged. Bloomberg calculations and Indian government data show that Russian barrels were cheaper than Nigerian barrels from April through June. That spread widened to nearly $19 a barrel in May, before easing to a $13 difference in June.
By comparison, in March, Russian crude sold at a $13 premium. “Indian refiners are going to try and get their hands on the cheapest crude possible that works with their refinery and product configurations,” Bloomberg quoted oil market analyst Vandana Hari as saying.
In June, Russia beat out Saudi Arabia as India’s second-biggest crude supplier, ranked behind Iraq. Oil from Iraq was about $9 a barrel more expensive than Russian crude in May, but sold cheaper in all other months, per Bloomberg calculations.
“Russian crude fits that bill for now. The Saudis and Iraqis are not entirely losing out because they are directing more supply to Europe,” Hari added.
This development is significant for Africa’s biggest economy because India represents the largest importer of Nigeria’s crude oil, earning the sub-Saharan country about N13.9 trillion since 2015, according to data gathered by BusinessDay.
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