Indian monthly oil imports from Russia decreased by 18.3% in August to 1.7 million barrels per day (bpd) due to lower crude processing by some refiners. This decline led to China stepping up purchases of Russian oil last month, becoming Moscow’s top oil client once again after India held that position in July. The share of Russian oil in India’s August imports decreased to about 36%, falling from 44% in July. Despite this decrease, Russia remained the top oil supplier to India in August, followed by Iraq and Saudi Arabia.
Overall, India imported 4.7 million bpd of oil in August, a 1% decrease from July. Indian imports of Saudi Arabian oil also declined to about 498,200 bpd, the lowest since July 2023. The decrease in oil imports from Russia can be attributed to Indian refiners shutting down some units for maintenance, such as Chennai Petroleum and Bharat Petroleum Corp. These maintenance works led to a decline in crude processing at the refineries.
Indian refiners have been purchasing Russian oil at discounted prices since Western sanctions were imposed on Moscow in response to the invasion of Ukraine. In addition to Russian oil, Indian refiners also imported Canadian oil at 138,000 bpd and US crude at 254,000 bpd in August. The decline in Russian oil intake resulted in OPEC nations’ share in India’s overall purchases increasing to a four-month high, driven by higher purchases of Iraqi oil.
However, the share of OPEC oil in India’s imports during the first five months of the fiscal year starting in April reached an all-time low. The share of Middle Eastern oil in India’s August crude imports rose to 44.6% from 40.3% in July. Despite this increase, the region’s share declined to about 44% from around 46% a year ago during April to August. Overall, the fluctuations in oil imports from Russia and other countries have impacted India’s oil import dynamics and its reliance on various oil-producing regions.
In conclusion, India’s oil import trends in August showed a decrease in imports from Russia, leading to shifts in the country’s oil import dynamics. The increase in purchases from China, along with a decline in Russian oil imports, altered the share of Russian oil in India’s overall imports. The maintenance work at Indian refineries also affected the processing of crude oil, impacting the import quantities from different countries. Despite challenges, Indian refiners continue to diversify their oil imports, including purchases from Russia, the US, and Canada. The fluctuations in OPEC nations’ share in India’s oil imports indicate the changing dynamics of global oil trade and geopolitical influences.
