India’s Crude Imports Rise 13% In September As Russian Supply Remains Dominant

New Delhi, Sep 29 (KNN) Russia remained India’s largest source of crude oil in September, with shipments broadly maintaining the previous month’s levels amid disruptions to supplies through the Persian Gulf route, according to data from maritime intelligence firm Kpler.

India’s Crude Imports Rise 13 Per Cent

India imported 5.251 million barrels per day (bpd) of crude oil during September 1-27, up around 13 per cent from the 4.654 million bpd imported in August. 

Russia accounted for 1.742 million bpd, followed by Iraq at 579,000 bpd, Saudi Arabia at 570,000 bpd, the UAE at 483,000 bpd and Kuwait at 333,000 bpd.

Russia’s September shipments, however, remain the lowest since April, when the country supplied 1.721 million bpd for the full month, reported Business Standard.

US Sanctions Raise Risks For Russian Oil Buyers

The continued dependence on Russian crude comes as the US moves towards tougher measures against countries purchasing Russian energy. 

The recently approved sanctions legislation could pave the way for tariffs of up to 100 per cent on goods from India and other buyers of Russian energy.

Refiners Likely To Maintain Russian Crude Purchases

Analysts said Indian refiners are unlikely to substantially reduce Russian Urals purchases in the near term, given tight global crude availability and disruptions in West Asia.

“Physical crude balances are tight, particularly for medium-grade barrels,” said Nikhil Dubey, lead analyst (refining) at Kpler, noting that such grades remain important for Indian refiners.

Dubey said refiners would seek flexibility in sourcing while prioritising supply security. Once West Asian supplies stabilise, refiners could increase purchases from the region due to its proximity, lower freight costs and suitability for India’s product mix.

Replacing Russian Supply Seen As Difficult

Prashant Vasisht, senior vice-president and co-group head, corporate sector ratings, ICRA, said even a 20-30 per cent reduction in Russian oil imports would leave India purchasing substantial volumes from the country. 

He added that replacing around 2 million bpd of Russian supply would be difficult while supplies from Saudi Arabia are also affected.

Meanwhile, Brent crude rose more than 2 per cent to around USD 107 a barrel on Monday amid uncertainty over efforts to resolve the US-Iran conflict and reopen the Strait of Hormuz.

Petroleum and Natural Gas Minister Hardeep Singh Puri has previously warned that an escalation of the West Asia crisis could pose further challenges to India’s energy security.

(KNN Bureau)