Indian refiners are reducing their purchases of Russian crude from recent highs as Ukrainian attacks on Russia’s refineries and Black Sea ports disrupt supplies from the country, India’s largest source of imported oil.
With Russian exports under pressure, Indian processors are increasingly looking for alternative crude grades from West Africa, the Americas and Persian Gulf producers, Bloomberg reported.
The shift comes even as crude shipments through the Strait of Hormuz remain constrained amid the ongoing US-Iran conflict.
Russian crude flows face supply pressure
Russia became India’s dominant crude supplier following the outbreak of the Ukraine war in 2022, with Russian oil accounting for more than half of India’s imports last month.
However, imports are expected to decline to around 2 million barrels per day this month, compared with roughly 2.8 million barrels per day in July, according to Kpler.
According to the report, Kpler analysts attributed the decline to weaker Russian export availability, increased competition from China, a normalization in India’s recent buying and refinery maintenance.
Russian crude shipments could stabilise above 2 million barrels per day in the coming months.
Indian refiners diversify crude purchases
Indian Oil Corp (IOC), the country’s largest refiner, has recently sought crude supplies from producers as far away as the Americas, an unusual move for the company. IOC also floated another tender primarily targeting Persian Gulf grades.
Hindustan Petroleum Corp and Mangalore Refinery & Petrochemicals Ltd have likewise made spot purchases of non-Russian crude.
Ukrainian attacks have affected Russia’s domestic refining operations and export infrastructure, contributing to fuel shortages while limiting Moscow’s ability to redirect crude into overseas markets.
Russian seaborne crude shipments fell to around 3.5 million barrels per day over the past four weeks, from more than 4 million barrels per day in July, tanker data showed.
India is also facing stronger competition from China for discounted Russian barrels. October-loading Sokol cargoes from Russia’s eastern ports were booked unusually early, indicating stronger forward demand and tighter availability.
Traditionally, India and China have focused on different Russian crude grades, but tighter supplies could increasingly bring the two major Asian buyers into direct competition.
