India’s Russian Crude Imports, China’s Geopolitical Balancing Act and New Gas Deal with Russia, and the Dangers of Europe’s Dependence on US LNG

In Today’s Issue:

• Breaking Records: India’s Crude Oil Imports from Russia (One chart)

• China’s Balancing Act between Saudi Arabia and Iran (One Chart)

• China’s New Gas Deal with Russia: A Good Strategy? ( 3 Charts and a table)

• Dangers of Europe’s Dependence on US LNG (3 Charts)

MAIN TAKEAWAYS:

1. During the first three months of this year, India imported an average of around 1.7 mb/d of Russian crude oil, way more than oil supplies from Iraq and Saudi Arabia.

2. Major Chinese refiners have always had an appetite for Saudi grades, particularly Arab Light given its characteristics. Aramco’s recent increase in OSPs for Asia will not lead to major changes in Saudi crude flows to Chinese buyers. 

3. Last month saw a sharp increase in China’s crude oil imports from Iran and Saudi Arabia as Beijing plays a mediator role to ensure uninterrupted supplies from the Gulf region’s main powers.  

4. Russia’s strategy is to replace European gas markets with new ones in Asia. The new Power of Siberia  2 gas pipeline could compensate for one-third of Russia’s pre-invasion piped gas exports to the EU.

5. Europe’s heavy dependence on US LNG jeopardizes its energy security and climate change policies,  while US reliance on the EU puts the US LNG industry at risk.

How Market and Geopolitical Factors Influence World’s Top Oil Consumers