India's Russian Oil Imports Plummet Amid US Sanctions Threat
India's Russian oil imports have taken a significant hit, falling by 16.5% in August to approximately 2.1 million barrels per day. Preliminary data suggests that September imports may decline further to around 1.9 million bpd. The decline predates the new US sanctions law, which allows Washington to impose tariffs of up to 100% on major Russian oil buyers.
The decrease in Russian imports is largely due to Indian refiners shifting their focus to alternative suppliers as Middle Eastern routes improved. August saw a 25% increase in Iraqi crude purchases to around 171,000 bpd, while Saudi imports rose by 1.5% to 328,000 bpd.
The total crude imports into India dropped by 8.8% in August to approximately 4.44 million bpd. Indian refiners are now exploring spot markets for replacement barrels as they weigh the risks associated with future Russian purchases. The new US sanctions law gives Washington authority to impose tariffs on goods from major buyers of Russian energy.