China’s Russian oil spree puts India in a bind

China's renewed purchases of Russian oil amid supply disruptions caused by the Iran conflict have put India in a difficult position. India, the world's third-largest crude importer, has been relying on record volumes of Russian crude to counter rising prices, but its access to this oil is dwindling. China, which has been the largest buyer of Russian and Iranian crude, has resumed importing more Russian oil from Russia's Asian ports, which previously supplied nearly 90% of China's seaborne Russian crude.

This shift has resulted in a significant drop in India's imports from Russian European ports, which had been providing the bulk of India's Russian crude at over 2.6 million barrels per day (bpd). As a result, India's total crude imports have fallen to an estimated 4.17 million bpd in August, the lowest since the Iran conflict began.

This shortage could have a ripple effect on Asia's already tight markets for refined products, given that India is a major exporter of diesel and gasoline.