NEW DELHI: In a striking realignment of its oil sourcing strategy, India’s oil imports from the Middle East surged to a nine-month high in November, while purchases of Russian oil fell to their lowest levels in three quarters, ship tracking data revealed. This shift underscores how India, the world’s third-largest oil importer, is navigating the interplay of global oil markets, refinery needs, and geopolitical pressures.
Middle Eastern crude accounted for 48 per cent of India’s oil imports at 4.7 million barrels per day (bpd) in November, reflecting a 10.8 per cent month-on-month increase to 2.28 million bpd.
Conversely, Russian oil imports dropped by 13 per cent compared with October, down to 1.52 million bpd, representing 32 per cent of the total intake.
The recalibration was driven by several factors, including maintenance turnarounds at Indian refineries and adherence to annual supply contracts with Middle Eastern producers.
“We had to adjust Russian oil intake during refinery maintenance while continuing to lift volumes committed under annual contracts with Middle Eastern suppliers,” explained a senior refining official in India.
Russia’s oil exports
Russia’s oil exports from its western ports also declined during November, as local refiners ramped up consumption following the completion of their own maintenance cycles. Furthermore, Russia’s recent promise to implement additional output cuts from late 2024 to balance previous overproduction added another layer of complexity to its export landscape.
India’s oil imports grew by 2.5 per cent month-on-month and 5 per cent year-on-year, reaching 4.7 million bpd, as the country continued its strong appetite for energy.
Notably, the shift in sourcing pushed OPEC’s share in India’s oil imports to an eight-month high of 53 per cent, while the share of oil from the Commonwealth of Independent States (CIS), including Russia, declined to 35 per cent from 40 per cent in October.
Russia still numero uno
Despite the reduction, Russia retained its position as India’s top supplier, followed by Iraq and Saudi Arabia. However, the growing dominance of Middle Eastern oil signals a strategic shift, as traditional suppliers regain ground amid challenges faced by Russia due to sanctions and evolving market conditions.
The latest data underscores the balancing act Indian refiners are performing to secure cost-effective energy supplies while honoring long-term agreements.
For Middle Eastern producers, the situation presents an opportunity to reclaim lost market share, highlighting how quickly global oil trade flows can adapt to shifting circumstances.
