India’s oil imports from Russia bounced back in September, recovering from a seven-month low in August. Preliminary trade flow data from LSEG, Kpler, and Vortexa revealed that India, the world’s third-largest oil importer and consumer, increased imports from Iraq while reducing imports from Saudi Arabia. The price competitiveness of Russian crude prompted Indian refiners to favor it, while Iraqi barrels were preferred over Middle Eastern oil due to lower prices. In September, India imported about 1.55 million barrels per day (bpd) of Russian oil, an increase of 16% compared to August, while imports from Iraq rose by 17% to approximately 1.1 million bpd. In contrast, imports from Saudi Arabia dropped by 10% to about 676,000 bpd. According to Kpler data, India’s imports of Russian crude reached 1.8 million bpd in September, growing from less than 1.5 million bpd in August. Analysts predict that India’s imports from Russia may reach the 2 million bpd mark once refiners complete maintenance turnaround of units by the end of October. Indian refiners typically purchase crude two months ahead of processing, acquiring Russian oil on the spot market and relying on term contracts for Middle Eastern crude. Discounts for September-loading Russian oil widened after Indian refiners reduced purchases in August. Indian refiners have taken advantage of discounted Russian oil following Western sanctions imposed after Russia’s invasion of Ukraine. The Thomson Reuters Trust Principles.
