India's crude oil imports from West Asia rebounded sharply in September, reaching pre-war levels as refiners increased purchases from Gulf producers while reducing their dependence on Russian supplies, as per a report by Reuters citing ship-tracking data.
The recovery followed increased oil shipments through the Strait of Hormuz, which helped ease supply disruptions linked to the Iran war.
India, the world's third-largest crude importer, had initially increased Russian oil purchases to compensate for reduced supplies from West Asia.
However, improving availability and competitive pricing have prompted refiners to reconsider their sourcing strategies.
Middle East Crude Imports Reach Highest Level Since February
India imported approximately 2.8 million barrels per day (bpd) of Middle Eastern crude in September, the highest volume since February.
The region's share of India's total crude purchases climbed to around 54%, compared with 32% in August.
Overall crude imports increased 20% month-on-month to approximately 5.33 million bpd.
Iraq recorded a particularly sharp increase in shipments to India, with volumes reaching nearly 830,000 bpd against 171,000 bpd in August.
Despite the shift towards Gulf suppliers, Russia remained India's largest individual crude supplier, followed by the United Arab Emirates and Iraq.
Russian Oil Purchases Decline As Price Advantage Narrows
India's Russian crude imports fell approximately 14% month-on-month to 1.8 million bpd in September. Russia's share of India's crude purchases declined to 33.5% from 46.6% in August.
As per the report, an Indian refining source said Russian oil purchases could remain subdued as stronger competition from China and narrowing price advantages influence procurement decisions.
Russian crude premiums over Brent have reportedly narrowed to $1-$2 per barrel from more than $10 in recent months.
The source added that some Middle Eastern producers had reduced selling prices to offset rising freight costs.
Shorter shipping distances also make Gulf crude attractive to Indian refiners.
With the landed cost of Russian oil approaching that of certain Middle Eastern grades, particularly Iraqi crude, refiners are increasingly evaluating suppliers based on overall pricing.
The source indicated that future purchases would depend primarily on which suppliers offered the most competitive rates.
