India’s Middle East Crude Imports Rebound 32% in September

India’s crude oil imports from the Middle East recovered to levels last seen before the war in September, supported by increased oil shipments through the Strait of Hormuz. Meanwhile, India’s purchases of Russian crude declined as Chinese buyers increased competition for Russian supplies.

According to vessel-tracking data compiled by Reuters, India imported 2.8 million barrels per day (bpd) of crude from the Middle East in September, a 32% increase from August and the highest level since February.

Middle Eastern crude accounted for 54% of India’s total oil imports during the month. Indian refiners increased their purchases of spot cargoes as Gulf producers managed to move larger volumes of crude through the Strait of Hormuz, reportedly using ship-to-ship (STS) transfers in the Gulf of Oman.

Russia remained India’s largest individual crude oil supplier in September, although shipments declined. Imports of Russian oil fell by 14% from August to 1.8 million bpd. Russia’s share of India’s total crude imports also dropped significantly, from 46.6% in August to 33.5% in September.

China’s growing demand for Russian crude has added to the competition for available supplies. With Iranian oil unavailable to Chinese buyers, China has increasingly turned to Russian crude, putting it in more direct competition with Indian refiners.

India’s declining purchases of Russian oil have largely reflected commercial considerations, as refiners continue to assess prices and supply availability when making purchasing decisions.

The price of Russia’s flagship Urals crude loaded at Baltic ports has increased and is now approaching the price of Middle Eastern grades. At the same time, Middle Eastern crude availability has improved in recent weeks as shipments through the Strait of Hormuz have recovered, making supplies from the region more attractive to Indian buyers.

Looking ahead, Indian refiners are expected to continue favouring larger volumes of Middle Eastern crude when supplies are available. Competitive pricing and shorter shipping routes from the Gulf of Oman to India are likely to support this preference, according to a source at an Indian refinery cited by Reuters.

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