The increase in sourcing from Russia is causing a higher average sailing distance for crude oil tankers discharging in India. Year-to-date, the average sailing distance has increased by 10%, causing an 8% increase in total tonne miles despite a 2% fall in volumes. Compared to 2021, the average sailing distance is up 25%.
Indian buyers started increasing sourcing from Russia in 2022. Combined, the European Union and the United States used to buy about 65% of Russia’s seaborne crude oil exports. This was before the implementation of sanctions on Russian oil exports following its invasion of Ukraine, and Russia has since found new buyers. From countries in the Persian Gulf, India imported about 70% of its seaborne crude oil. But, the growth in sourcing from Russia has declined those volumes and India now imports only 45% from the region. Instead, the region has increased exports to North Europe and the Mediterranean.
