India’s Russian crude imports hit five-month low

India's imports of Russian crude oil dropped to about 1.75 million barrels per day in September, the lowest level since April, as refiners diversified purchases amidst geopolitical risks, according to ship tracking data. While overall crude imports rose sharply to an average of 5.3 million barrels per day in September, the decline in Russian volumes prompted Iraq and Saudi Arabia to step up supplies, with Iraq supplying 575,000 bpd and Saudi Arabia 566,000 bpd in September.

The UAE's contribution slightly decreased to 480,000 bpd. Sumit Ritolia, Senior Manager at Kpler, explained that the decline in Russian flows is due to ongoing US pressure on oil buyers, prompting Indian refiners to maintain flexible sourcing options. However, Russia still makes up a significant portion of India's crude basket, driven by economics, availability, and refinery compatibility.

The reduction in Russian imports does not signify a wholesale shift away from Russian crude but suggests that Indian refiners may exercise caution if the US issues unilateral punitive measures targeting Indian purchases of Russian oil. The decline in Russian crude has been partially offset by increased Middle Eastern supplies, with imports from the region estimated at about 3 million barrels per day in September, nearing pre-war levels.