New Delhi: India’s crude oil imports from the Middle East returned to prewar levels in September as the country increased purchases from Gulf suppliers and reduced its imports from Russia. The shift reflects changing price differences, competition for supplies and efforts by Indian refiners to secure reliable oil deliveries amid continuing tensions in the region.
India imported about 2.8 million barrels of crude oil per day from the Middle East in September, accounting for approximately 54 per cent of its total crude imports. This was a significant increase from August, when the region accounted for about 32 per cent of India's imports.
The country's total crude oil imports rose to around 5.33 million barrels per day in September, an increase of approximately 20 per cent from the previous month. Meanwhile, Russian crude imports fell by 14 per cent to about 1.8 million barrels per day.
Russia remained India's largest individual crude oil supplier despite the decline. Its share of India's total crude imports dropped from 46.6 per cent in August to 33.5 per cent in September. The figures indicate a shift in purchasing patterns rather than a complete move away from Russian oil.
Iraq recorded a particularly sharp increase in supplies to India. Indian imports of Iraqi crude rose to approximately 830,000 barrels per day in September, compared with around 171,000 barrels per day in August. Saudi Arabia and the United Arab Emirates were also important suppliers to Indian refiners.
The figures are estimates based on shipping data that tracks the movement of oil cargoes. They provide an indication of changes in supply patterns, although estimates may differ from official government statistics because of variations in reporting periods and data methods.
The recovery in Middle Eastern supplies follows months of disruption and uncertainty affecting oil shipments from the region. The Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman, is a major route for international oil and liquefied natural gas shipments. Security risks in the area have created challenges for vessels transporting energy supplies.
Oil producers and shipping companies have used different arrangements to maintain deliveries during periods of disruption. These have included alternative export routes, storage facilities and ship to ship transfers. Such measures have helped some suppliers continue moving crude oil to international markets, although they do not eliminate the risks associated with regional tensions.
The improvement in September's import figures does not mean that shipping conditions have returned to normal. Developments reported on October 22 indicated that tensions in the Middle East continued to threaten maritime transport and energy supplies. The situation remains a concern for countries such as India, which depend heavily on imported crude oil.
Price differences between Russian and Middle Eastern crude have also influenced Indian purchasing decisions. The price premium on Russian oil narrowed considerably, reducing the financial advantage that had encouraged Indian refiners to buy more Russian crude in recent months.
Refiners consider several factors when choosing their suppliers. These include the price of crude oil, shipping charges, insurance costs, delivery times and the suitability of different grades for their refineries. Changes in these factors can make supplies from one region more attractive than those from another.
Competition from China has also affected the market for Russian crude. However, the available figures do not establish that Chinese demand alone caused India's reduction in Russian purchases. Changes in prices, supply availability and geopolitical conditions may all have contributed to the shift.
The change in purchasing patterns comes as India faces a higher oil import bill. Data from India's Petroleum Planning and Analysis Cell showed that the country's crude oil import bill reached approximately $15.4 billion in September, an increase of 47 per cent from the same month a year earlier.
India's average crude oil basket price also rose to $116.09 per barrel in September, compared with $69.61 a year earlier. The basket reflects the mix of crude grades imported by India and provides an indication of the prices paid for its oil supplies.
The higher import bill highlights the financial pressure that rising international oil prices can place on the Indian economy. The country depends heavily on overseas crude supplies to meet its energy needs, leaving it exposed to price increases and disruptions to major shipping routes.
International oil prices also faced renewed pressure from regional tensions. Brent crude, a major global oil benchmark, reached $112.17 per barrel during trading on October 22. Concerns about maritime security and possible supply disruptions continued to influence market expectations.
For India, increasing purchases from the Middle East provides greater flexibility in managing its oil supplies. However, the September figures do not establish whether the shift will continue in the coming months.
Future purchasing decisions will depend on the relative prices of Russian and Middle Eastern crude, the availability of supplies, shipping and insurance costs, and developments in the region.
The September figures show how India's oil sourcing can change as market conditions evolve. Although Middle Eastern supplies have recovered, Russia remains a major supplier. Continued uncertainty in the global oil market means that India will need to balance cost, supply reliability and energy security when deciding where to buy its crude oil.