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India Shifts Oil: Less Russian Crude, More Middle East
28 Sep
Summary
- India's Russian crude imports hit lowest since April in September.
- Overall crude intake rose due to stronger refinery operations.
- Iraq and Saudi Arabia increased supply to compensate for lower Russian volumes.
In September, India's imports of Russian crude oil saw a notable decline, averaging approximately 1.75 million barrels per day, the lowest volume recorded since April. This reduction occurred as Indian refiners strategically diversified their crude oil purchases to mitigate geopolitical risks. Concurrently, India's total crude oil intake experienced a significant rise, averaging about 5.3 million barrels per day, an increase from both the previous month and the prior year, attributed to enhanced refinery operations.
This shift in sourcing saw Middle Eastern suppliers like Iraq and Saudi Arabia increase their exports to India to compensate for the reduced Russian volumes. Iraq's supply rose to approximately 575,000 bpd, and Saudi Arabia's to 566,000 bpd in September. This diversification highlights India's adaptable procurement strategy, balancing economics, availability, and geopolitical considerations, while maintaining high overall import levels to support strong refinery utilization.
