India’s oil imports drop sharply even as Russian supply surges

India’s crude oil imports saw a notable decline in March, even though purchases from Russia reached record levels. The overall drop was largely driven by disruptions in Middle Eastern supply amid ongoing geopolitical tensions, which could not be fully compensated by increased Russian inflows.

Data from shipping and industry sources indicates that India imported around 4.5 million barrels per day (bpd) of crude in March, marking a decline of about 13% compared to the previous month. The shortfall was primarily due to reduced shipments from the Middle East.

Imports from the region fell sharply, dropping by more than half to nearly 1.18 million bpd. In contrast, Russian crude supplies to India surged significantly, nearly doubling from February levels to reach approximately 2.25 million bpd. This increase was supported by temporary flexibility in purchasing cargoes that had already been loaded.

After relatively moderate buying between November and February, India sharply increased its intake of Russian crude in March. However, the overall import volume still declined due to limited movement of oil through key maritime routes, particularly around the Strait of Hormuz.

Indian refiners have been actively securing Russian barrels as supply from traditional Middle Eastern sources faced constraints. This trend is expected to continue into April, with Russian imports likely to remain close to recent highs following an extension of purchase flexibility for a limited period.

Despite the surge in Russian oil, reduced availability from the Middle East has significantly impacted India’s overall import balance. Russia emerged as the top crude supplier to India during March, followed by Saudi Arabia, which overtook Iraq. Iraqi exports faced greater logistical challenges, while Saudi shipments had some flexibility through alternative routes.

With Iraqi volumes declining, Angola rose to become one of the leading suppliers to India, alongside the UAE and Iraq, reflecting a shift in sourcing patterns as refiners adapt to ongoing supply disruptions.

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