India-Russia Oil Trade Witnessed Fall of 18.3% in August 2024

India’s monthly oil imports from Russia dropped by 18.3% in August, averaging around 1.7 million barrels per day (bpd), due to reduced crude processing by some refiners, according to tanker data from trade sources. 

In contrast, China increased its purchases of Russian oil, reclaiming its position as Moscow’s top client after India briefly held that title in July. 

The share of Russian oil in India’s imports fell to approximately 36% in August, down from about 44% in July, marking a decline after five consecutive months of increases. Despite this drop, Russia remained India’s largest oil supplier in August, followed by Iraq and Saudi Arabia.

Overall, India, the world’s third-largest oil importer and consumer, imported 4.7 million bpd of oil in August, a slight decrease of about 1% from July. Saudi Arabian oil imports also fell to their lowest level since July 2023, at around 498,200 bpd.

Several Indian refiners, including Chennai Petroleum and Bharat Petroleum Corp, have scaled back crude processing for maintenance, contributing to the reduced intake of Russian oil. 

Indian refiners have been actively purchasing discounted Russian oil since Western sanctions were imposed following Russia’s invasion of Ukraine. In addition, India received approximately 1,38,000 bpd of Canadian oil and 2,54,000 bpd of U.S. crude last month.

As Russian oil intake declined, the share of OPEC nations in India’s overall oil purchases rose to a four-month high in August, largely due to increased imports of Iraqi oil. However, the share of OPEC oil in India’s imports for the fiscal year starting in April remains at an all-time low.

The share of Middle Eastern oil in India’s August crude imports increased to 44.6%, up from 40.3% in July. Yet, during the April-August period, the region’s share decreased to about 44%, down from roughly 46% a year prior.

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