India, the world’s third-biggest oil importer and consumer has reshaped its crude sourcing strategy, according to data from industry sources. Russian crude shipments in January made up the smallest portion of New Delhi’s oil imports since late 2022. During the same period, supplies from the Middle East rose to their highest share, Reuters reported quoting sources.Back in 2022, Russia emerged as India’s top crude supplier after Indian refiners began buying large volumes of discounted Russian oil following Moscow’s invasion of Ukraine. Over time, Russia’s share of India’s crude oil imports climbed from under 1% to almost 40% at its highest point. However, recent US sanctions on Russian suppliers and Washington’s push for a trade agreement have led New Delhi to cut back on Russian oil purchases, the data showed.Since November, China has overtaken India as Russia’s largest buyer of seaborne crude.Smallest share since late 2022In January, India imported about 1.1 million barrels per day of Russian crude, the lowest level since November 2022, with Russia’s share in India’s total oil imports shrinking to 21.2%, the smallest share since late 2022.January imports from Russia were down 23.5% from December and roughly one-third lower than a year earlier.According to Reuters, analysts expect imports to drop further, averaging around 1–1.2 million bpd in February and about 800,000 bpd in March, though mid-term flows are seen declining gradually rather than ending completely.To offset reduced Russian volumes, Indian refiners have turned to other grades from the Middle East, South America and Western suppliers.Middle Eastern crude made up roughly 55% of India’s total imports in January, while Latin American grades hit a 12-month high of about 10%.Saudi Arabia has regained its position as India’s top supplier, with imports tracking at record levels so far in February.Lower Russian purchases have lifted OPEC’s share in India’s crude basket to an 11-month high.Under an interim trade deal, the U.S. has cut some tariffs on Indian goods and dropped a 25% punitive duty after New Delhi agreed to scale back Russian oil imports, and is also encouraging India to boost energy purchases from the U.S. and potentially Venezuela.
