India Boosts West Asian Oil Imports in September as Russian Crude Purchases Fall

India's crude oil imports from West Asia surged in September, returning to pre-war levels as refiners cut back on Russian oil amid stiff competition with China. Ship tracking data shows that refiners bought up spot cargoes because producers and traders increased shipments through the Strait of Hormuz, which eased supply shortages caused by the Iran war.

Import Numbers

India initially raised Russian crude imports to make up for reduced West Asian supplies when the war started. In September, crude imports from West Asia jumped to about 2.8 million barrels per day, which is the highest level since February. Gulf oil accounted for about 54% of overall imports, and overall crude imports rose 20% month-on-month to around 5.33 million barrels per day.

Shift From Russia

In contrast, Russian oil imports fell about 14% on the month to about 1.8 million barrels per day in September. Its share of India's oil purchases dropped to 33.5% from 46.6%. Russian oil purchases are likely to stay low in the coming months because the landed cost is now similar to some West Asian grades, mainly Iraqi oil. Premiums on Russian oil narrowed to $1 to $2 per barrel against Brent from over $10 in recent months as West Asian supplies hit the market.

Pricing and Logistics

An unnamed Indian refining source stated that refiners prefer to buy discounted West Asian crude because voyage times are shorter and some producers cut selling prices to offset high freight costs. The source added that they will buy from whoever offers better prices. Russia remained India's largest oil supplier, followed by the United Arab Emirates and Iraq. Meanwhile, India's imports of Iraqi oil rose to about 830,000 barrels per day from 171,000 barrels per day in August.

Context

Global crude oil trade relies heavily on key maritime chokepoints like the Strait of Hormuz, meaning regional conflicts can quickly disrupt supply chains and shift buying patterns toward alternative suppliers.