India pivots towards middle-east energy supplies whilst retaining Russian crude partnerships

Indian refiners have stepped up purchases of Middle Eastern crude oil whilst curbing imports from Russia, according to industry statistics compiled by data intelligence firm Kpler, OilPrice reported.

The calibration of energy sourcing does not signal an intention by New Delhi to halt Russian oil imports completely, even as the United States threatens punitive tariffs of up to 100%.

Inflow figures reveal that Middle Eastern suppliers delivered an average of 3 million barrels daily to Indian ports this month. In contrast, shipments of Russian crude declined to a daily average of 1.75 million barrels.

The volume imported from Middle Eastern nations represents a return to levels last seen prior to the war in Ukraine. Meanwhile, the daily average for Russian crude marks a notable reduction from August, when deliveries stood at 2.1 million barrels per day, defying earlier Kpler projections that had placed September imports at 1.9 million barrels daily.

Despite this downward trend, Indian processing facilities are not preparing to abandon Russian energy purchases altogether. Moscow retains its position as the largest single supplier of crude oil to India, even with its reduced market share recorded in September.

Aggregate Indian crude imports reached 5.3 million barrels per day during the month, reflecting an increase of 600,000 barrels per day compared to August and a rise of 700,000 barrels daily relative to the corresponding period last year.

Analytical insights from Kpler expert Sumit Ritolia emphasise that Russian crude remains an integral pillar of India’s overall import basket. The firm does not interpret the recent dip in volume as an indicator that New Delhi is turning away from Russian supplies permanently.

India currently ranks as the second-largest global importer of Russian crude oil, trailing only China. In recent months, energy shipments from Russia have accounted for nearly half of all crude purchases made by Indian refiners.

As one of the primary buyers of Russian energy, India faces the prospect of import duties reaching 100% on its merchandise entering the United States under Washington's latest sanctions framework. These potential tariff measures threaten to strain bilateral economic relations at a time when negotiators from New Delhi and Washington have been engaged in month-long discussions to finalise a trade agreement.

India remains the second-largest importer of Russian crude globally after China, with Russian shipments previously constituting almost half of total domestic purchases.

However, continued trade with Moscow exposes Indian exports to potential 100% American tariffs under newly enacted sanctions laws. This trade friction threatens to disrupt ongoing bilateral negotiations intended to establish a long-term trade agreement between New Delhi and Washington.

Agencies