India Cuts Russian Oil Imports as Iraq, Saudi Supplies Rise

India’s Russian crude imports fall to a five-month low in September as refiners increase purchases from Iraq and Saudi Arabia, while overall crude imports rise on stronger refinery activity.

India’s imports of Russian crude oil fall to their lowest level in five months in September as refiners diversify their supply sources amid geopolitical and logistical uncertainties. At the same time, overall crude imports rise sharply, supported by stronger refinery operations and fuel demand.

According to ship-tracking data from commodities analytics firm Kpler, India imports an average of about 1.74 million barrels per day (bpd) of Russian crude in September. The figure is the lowest since April, when imports stood at around 1.58 million bpd. Russian supplies had averaged about 2.02 million bpd in August and 2.65 million bpd in July.

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The decline in Russian supplies is partly offset by increased purchases from Middle Eastern producers. Iraq supplies around 575,000 bpd to India in September, compared with 163,000 bpd in August. Saudi Arabia’s supplies also rise to about 566,000 bpd, from 347,000 bpd in August. Imports from the UAE, however, decline to around 480,000 bpd from 546,000 bpd.

Despite the reduction in Russian volumes, India’s overall crude imports increase to approximately 5.3 million bpd in September. This is around 600,000 bpd higher than August and about 700,000 bpd above the year-earlier level, according to Kpler data. The increase reflects higher refinery utilisation and stronger demand for refined petroleum products.

Sumit Ritolia, Senior Manager for Modelling at Kpler, says the decline in Russian flows comes as Washington continues to pressure buyers of Russian oil. He adds that Indian refiners are keeping their sourcing options flexible, while decisions continue to depend on crude economics, availability and compatibility with individual refineries.

Middle Eastern crude imports are estimated at around 3 million bpd in September, broadly returning to pre-war levels. Higher supplies from Iraq, Kuwait and Saudi Arabia, along with improving crude movements through the Strait of Hormuz and other logistical arrangements, help refiners secure alternative barrels.

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African and Venezuelan crude also contribute to India’s diversified supply mix. However, the latest decline in Russian imports does not necessarily indicate a complete shift away from Russian crude. Kpler says refiners may adjust Russian purchases depending on future sanctions, enforcement measures, waivers, market prices and the availability of alternative supplies.