India's Russian Crude Imports Plunge Amid Geopolitical Risks

India's imports of Russian crude oil have dropped to their lowest level since April as refiners diversify purchases amid geopolitical risks. According to data from global commodities data and analytics firm Kpler, India imported an average of 1.74 million barrels per day (bpd) of Russian crude in September, down from 2.02 million bpd in August and 2.65 million bpd in July.

The decline in Russian volumes has been offset by higher imports from Iraq and Saudi Arabia, which supplied 575,000 bpd and 566,000 bpd respectively in September. This is up from 163,000 bpd and 347,000 bpd in August. The UAE's supply also rose to 480,000 bpd from 546,000 bpd in August.

Sumit Ritolia, Senior Manager (Modelling) at Kpler, said that the decline in Russian flows comes as Washington continues to pressure buyers of Russian oil, prompting Indian refiners to keep their sourcing options flexible. He noted that Russia remains a major component of India's crude basket and buying decisions continue to be driven primarily by economics, availability, and refinery compatibility.

Ritolia also mentioned that the recent reduction in Russian volumes does not indicate a wholesale shift away from Russian crude, but Indian refiners could exercise greater caution if the US announces unilateral punitive measures targeting India over purchases of Russian oil.