India’s Russian Oil Imports Fall 16.5% in August, Seen Lower in September

India’s purchases of Russian oil experienced an intense plunge in August and are projected to experience a continued decline in September despite Russia being the country’s leading source of crude.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Russia’s supply of crude oil to India plunged 16.5% from July to around 2.1 million barrels per day based on figures from trade sources via Reuters. 

Russia was succeeded by the United Arab Emirates and Venezuela in India’s list of major sources of oil. 

In general, total crude oil imports in India were reduced 8.8% to 4.44 million barrels per day. 

The suppliers’ composition also changed as the Indian purchases of Iraq’s crude rose by about a quarter to 171,000 barrels per day. 

The UAE’s supply declined by 5.4% from July to about 620,000 barrels per day while Saudi Arabia’s crude imports rose 1.5% to 328,000 barrels per day. 

This development came following efforts by Middle Eastern suppliers in working around the disruptions at the Strait of Hormuz. 

Abu Dhabi National Oil Company has been moving crude produced inside the Strait for sale from storage and export facilities at Fujairah and Sohar. ADNOC has also been buying crude from neighbouring producers, including Iraq, for resale. 

India had increased purchases of Russian crude after tensions between the United States and Iran led to a blockade of the Strait of Hormuz. 

That trend now appears to be easing. Preliminary data from Kpler indicates that Russian oil imports could fall further to about 1.9 million barrels per day in September. 

Indian refiners are also looking at spot-market cargoes for October and November. 

Reuters reported that refiners are concerned they may need to reduce purchases from Moscow if U.S. President Donald Trump moves ahead with tariffs of as much as 100% on countries buying Russian oil. 

India, which is also negotiating a trade agreement with Washington, has said it remains committed to securing energy supplies and will continue sourcing oil from a range of sellers based on market conditions.