India’s intake of Russian crude oil has significantly decreased, with shipments from the United States experiencing a parallel rise. Reports indicate an 8.4% drop in Russian crude deliveries to India from April to September, a direct consequence of Washington’s imposition of a 25% tariff on oil originating from Moscow. This move has reshaped international energy trade routes.
The changing import patterns are also attributed to a more competitive global oil market and diminishing discounts offered by Russian suppliers. Industry insiders and shipping data confirm that Indian refiners are now turning to the Middle East and the United States for their crude needs, signaling a strategic realignment away from Russia.
Political pressure from the U.S. has also played a role in this transition. Concerns were voiced by White House Trade Advisor Peter Navarro, who suggested that India’s oil purchases from Russia were inadvertently funding the conflict in Ukraine. This diplomatic engagement has clearly influenced India’s energy sourcing strategy.
Analyzing the data, a prominent Indian refinery imported an average of 1.75 million barrels of Russian crude per day during the first half of the fiscal year. By September, imports held at 1.6 million barrels daily, marking a substantial 14.2% year-on-year decrease compared to the same month in the prior year.
Notable shifts are occurring within India’s refining sector. While private companies like Reliance Industries Limited and Nayara Energy boosted their Russian oil acquisitions in September, state-run refineries have consequently reduced their reliance on these supplies. U.S. trade officials have highlighted that curbing Russian imports is a key step towards tariff reductions and the finalization of bilateral trade deals.
Over the April to September period, India’s crude oil imports from the U.S. climbed by 6.8%, reaching approximately 213,000 barrels per day. In total, India imported 4.88 million barrels of crude daily in September. This represents a marginal 1% dip from August but a notable 3.5% increase compared to the previous year’s September figures.
The market share of Russian oil in India’s total imports has shrunk from 40% to around 36% in the first six months of the fiscal year. The U.S. has seen its share grow, while imports from the Middle East have risen to 45%, up from 42%. Contributions from OPEC nations have also increased, moving from 45% to 49%.
This diversification strategy underscores India’s efforts to navigate a complex global energy environment, balancing economic considerations with geopolitical alignments. The United States is emerging as a key player, capitalizing on this shift in a crucial energy market.