NEW DELHI: India’s crude oil imports declined by 10% month-on-month to 4.24 million barrels per day (mbpd) in October 2024, according to energy cargo tracker Vortexa. Simultaneously, imports from Russia decreased by 7% over the same period.
This dip can be attributed, in part, to the robust import figures recorded in September 2024. The country imported a cumulative of 4.70 million barrels per day of crude oil in September, up from 4.17 million barrels per day in August.
“With domestic demand expected to rise due to festive seasons in Q4, refineries will likely be ramping up crude runs and imports next month,” said Serena Huang, Head of APAC Analysis at Vortexa.
As per Serena Huang, India has lowered its purchase from Russia due to stronger demand from Chinese refiners. She believes that Indian refiners can turn towards traditional West Asian suppliers to meet the demand in the fourth quarter of this calendar year.
India’s total crude oil imports from Russia, which were nearly 0.2% before the Russia-Ukraine war, have now risen to around 40%. This increase is largely because of significant discounts offered by Russia to Indian refineries compared to its West Asian counterparts.
In September 2024, Russia remained the top supplier of crude oil to India, supplying 1.79 million barrels per day (bpd), accounting for 38% of the total oil imports.
In August 2024, Russia’s share in Indian oil imports was 36%. However, the discount offered by Russia to Indian oil marketing companies has narrowed, and Russia is also diverting its supply to other countries. Consequently, India is shifting towards its traditional Middle Eastern suppliers.
“India’s imports of Russian crude are down 7% month-on-month in October, due to stronger purchases by Chinese refiners. India’s crude imports from Middle Eastern suppliers have remained robust. With Russian crude supplies expected to remain range bound, we expect refiners to import more Middle East supplies to meet their rising crude import demand in Q4,” said Serena Huang.