India Tilts Towards Middle East Oil as Russian Imports Decline

India has significantly increased its crude oil imports from Middle Eastern producers while reducing purchases of Russian crude, according to data from Kpler. This month, Indian refiners imported an average of 3 million barrels per day from the Middle East, a return to pre-war import levels.

Russian oil imports, however, have declined to an average of 1.75 million barrels per day in September, down from August's 2.1 million barrels per day. Despite this decline, Russia remains India's largest single supplier of crude oil and accounts for nearly half of all Indian crude purchases.

Kpler analyst Sumit Ritolia noted that 'Russia remains a central part of India’s crude import basket,' but emphasized that the decline in Russian imports does not necessarily mean a complete halt to buying Russian barrels. The United States has threatened 100% tariffs on Indian goods exported to the US if it completely suspends Russian oil imports.

India is the second-largest importer of Russian crude oil, behind China, and its reliance on Russian oil could impact trade relations with the US as the two countries negotiate a bilateral trade deal. India's total crude oil imports reached 5.3 million barrels per day in September, an increase of 600,000 barrels per day from August and 700,000 barrels per day from last year.