India’s Russian Oil Imports Ease in September Amid US Pressure.
Despite continuous US efforts to curb these flows, which Washington says help finance Moscow’s conflict in Ukraine, India’s oil purchases from Russia still made up over one-third of its total crude shipments in September, despite a minor decline.
Shipments to India, the third-largest oil consumer in the world, decreased from 1.72 million barrels per day in August to 1.61 million barrels per day in September, according to Kpler Ltd. Imports from Russia have decreased by 16% since September 2024, which is in line with patterns previously mentioned by industry sources.
Since the United States placed a punitive 50% tax on Indian goods imports in an effort to encourage New Delhi to reduce its purchases of Russian oil, the trade has drawn attention from all over the world. Notably, Washington has avoided taking comparable measures against China, another significant purchaser of Russian oil.
India still prioritises price-driven deals in spite of the US campaign, and Russian barrels are still appealing because of their lower prices. Nirmala Sitharaman, the finance minister, confirmed that India would keep purchasing Russian oil, concentrating on “what suits us best”. Refiners will continue to make purchases based on economics, according to Anuj Jain, Director of Finance at Indian Oil Corp.
According to Sumit Ritolia, principal analyst at Kpler, “Russian barrels remain central to India’s crude slate, but volumes are stabilizing at a lower plateau.” “Indian refiners are gradually broadening their supply basket, balancing economic advantage with energy security and geopolitical risk.”
Logistics and Discounts
The smallest discount to the Dated Brent benchmark since Moscow’s full-scale invasion of Ukraine in 2022 was around $1 per barrel in July-August for Russian Urals oil, which was delivered from Russia’s western ports. August purchases usually reach India in September, and the shrinking discount might have played a role in the little decline in imports.
Despite geopolitical tensions, drone strikes on Russian energy infrastructure have not disrupted availability for Indian buyers. Refiners reportedly have secured sufficient Urals crude for November delivery. Improved discounts of over $3 a barrel make Russian oil the cheapest supply source for India currently.
Russia’s overall seaborne crude exports are also robust, hitting a 16-month high, averaging 3.62 million barrels per day in the four weeks ending September 28-the highest since May 2024. This demonstrates Moscow’s ability to maintain exports despite sanctions and geopolitical pressures.
India continues to balance economic gains from discounted Russian crude with the need to maintain energy security and geopolitical prudence. At the same time, ongoing talks with the US indicate India is exploring opportunities to increase energy purchases from Washington, further diversifying its crude supply basket.
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