Bloomberg: India Is Cutting Back On Russian Oil Imports

India's largest oil refinery has already issued tenders for purchases from the United States and the Persian Gulf.

Indian refineries are being forced to cut back on imports of Russian oil from their current elevated levels. The main reason is Ukraine’s successful strikes on Russian infrastructure, which have significantly disrupted export shipments.

This was reported by Bloomberg.

Due to the pressure on Russian oil exports, Indian refineries have begun actively seeking alternative sources of crude. Buyers are turning their attention to barrels from West Africa, the Americas, and the Persian Gulf, despite regional tensions stemming from the conflict between the U.S. and Iran.

This shift in procurement patterns is occurring against the backdrop of expected growth in domestic demand in India. Oil refineries are wrapping up scheduled maintenance on their equipment, which will allow them to significantly increase production volumes in the near future.

According to Sumit Ritolia, a senior modeling manager at the analytics firm Kpler, Russian oil imports to India will fall to approximately 2 million barrels per day this month. This is a significant decrease compared to July’s peak of 2.8 million barrels.

The expert attributes this to market normalization following a period of active purchasing, a decline in the availability of Russian exports, and increased competition for crude from China. At the same time, analysts expect that shipments from Russia to India will stabilize slightly above the 2 million barrels per day mark going forward.

Against this backdrop, the country’s largest refiner, Indian Oil Corp., has already announced a series of tenders to purchase crude oil from the United States and the Persian Gulf. Hindustan Petroleum Corp. and Mangalore Refinery & Petrochemicals Ltd. have also joined this week in signing urgent agreements to purchase non-Russian crude.

The situation on the global market is further complicated by the conflict in the Middle East and the war unleashed by Russia against Ukraine. A series of Ukrainian drone strikes on Russian refineries and Black Sea ports has led to a fuel shortage within Russia and prevented Moscow from redirecting crude oil to foreign markets.

According to tanker tracking data, over the past four weeks, total oil exports from Russia have fallen to 3.5 million barrels per day, down from a July high of more than 4 million barrels.

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