West Asian Oil Imports Rise as Ship-to-Ship Transfers Bypass Strait of Hormuz Risks

West Asian Imports Rise

India's oil imports from West Asia grew in September as Gulf suppliers used ship-to-ship cargo transfers to move crude through the Strait of Hormuz. Provisional tanker data shows oil imports from Iraq jumped 238.2% sequentially in September to over 551,000 barrels per day. Imports from Saudi Arabia rose 56.2% to almost 543,000 barrels per day, while Kuwaiti oil surged 104.4% to about 317,000 tonnes. Qatar imports stood at nearly 110,000 barrels per day after being nil in August, though the UAE saw a 15.8% decline to around 460,000 barrels per day.

Russian Oil Decline

Russian oil imports fell for the second straight month, dropping nearly 9% in September to 1.9 million barrels per day from 2.1 million barrels per day in August. July had seen a historic high of 2.8 million barrels per day. The drop stems from stronger competition from Chinese refiners and tighter Russian crude availability caused by Ukrainian attacks on energy infrastructure. US pressure under the Lindsey O Graham Sanctioning Russia and Iran Act, which allows tariffs up to 100% on major buyers, has also added uncertainty.

Context

Ship-to-ship transfers involve moving oil from a shuttle tanker to another ship waiting in safer waters outside a chokepoint like the Strait of Hormuz. This practice shifts the transport risk from the buying nation to the supplier, helping maintain steady energy flows despite regional conflicts.