India Dials Back Russian Oil Imports Amid Shift to Middle East

India's oil imports have seen a shift in recent months, with the country increasing its purchases from Middle Eastern countries while reducing its intake of Russian crude. According to data from analytics company Kpler, India imported an average of 3 million barrels per day from the Middle East in September, compared to 1.75 million barrels per day from Russia.

This change marks a significant decline from August's imports, which averaged 2.1 million barrels per day from Russia. Despite this reduction, Russia remains the largest individual supplier of crude oil to India, with its share declining to 33% in September from 40% in August.

Kpler analyst Sumit Ritolia noted that Russia remains an important part of India's oil import structure, and the latest reduction in purchases does not mean the country is completely abandoning Russian crude. In fact, India is the second-largest importer of Russian oil after China, with supplies from Russia accounting for nearly half of all its crude oil purchases.

However, this increased reliance on Middle Eastern oil may have implications for India's trade relationships, particularly with the US. As a result of purchasing Russian oil, India may face tariffs of up to 100% on goods exported to the US market following the latest sanctions package.