India’s oil imports from leading supplier Russia dipped in September, but held at about a third of overall shipments in spite of a US push to curb flows it says are helping to fund Moscow’s war in Ukraine.
Cargoes to the third-largest consumer totaled 1.61 million barrels a day in September, down from 1.72 million the month before, according to Kpler Ltd. Compared with a year ago, Russian flows are 16 per cent lower — in line with a range that was flagged by people with knowledge of the matter in August.
Oil traders are focused on the trade after Washington imposed a punitive 50 per cent levy on US imports of Indian goods in a bid to pressure New Delhi to curb its appetite for Russian oil, although it’s refrained from similar action against China, another major buyer. In response, India made plain the deals are price-driven and will continue, although it’s also signaled it wants to buy more US energy amid talks with the Washington on the nations’ relationship.
“Russian barrels remain central to India’s crude slate, but volumes are stabilizing at a lower plateau,” said Sumit Ritolia, lead analyst at Kpler. “Indian refiners are gradually broadening their supply basket, balancing economic advantage with energy security and geopolitical risk.”Last month, India’s Finance Minister Nirmala Sitharaman said the country would continue buying Russian oil, taking “what suits us best.” Separately, Indian Oil Corp. Director of Finance Anuj Jain said the refiner would also press on with purchases, depending on the underlying economics. The Russian cargoes typically come with discounts, making them attractive.
Russia’s Urals crude — which ships from the nation’s west — was sold at about a $1 a barrel discount to the Dated Brent benchmark in July-August, the narrowest since 2022, when Moscow began its full-scale invasion of Ukraine. Purchases done in August would typically arrive in India in September, and the narrowing discount may also have helped keep buyers at bay.
Drone strikes against Russian energy infrastructure have yet to impact availability for India. Refiners have been able to get enough Urals for November-delivery, said people familiar with the matter, who didn’t wish to be identified due to the sensitivity of the matter. Discounts have improved to more than $3 a barrel, making it the cheapest supply source, the people said.
The Indian import figures chime with other data that point to Moscow’s ability to keep cargoes on the move. Russia’s overall seaborne crude exports hit a 16-month high in the past four weeks, averaging 3.62 million barrels a day in the period to September 28, according to figures compiled by Bloomberg. That matched the highest since May 2024.
