India Middle East Oil Imports Jump 32% in September

India saw its crude oil imports from the Middle East rebound in September to pre-war levels amid higher volumes exiting the Strait of Hormuz, according to vessel-tracking data compiled by Reuters. Competition from China for Russian oil also resulted in declining imports of Russian crude.

Middle East Rebound

India's crude oil imports from the Middle East jumped to 2.8 million barrels per day (bpd) in September, marking a 32% increase compared to August and reaching the highest level since February. Middle Eastern oil accounted for 54% of all Indian imports last month as refiners bought a growing number of spot cargoes. Gulf producers managed to route increasingly higher crude volumes through the Strait of Hormuz via ship-to-ship transfers in the Gulf of Oman.

Shifts in Russian Oil Imports

While Russia remained the single largest crude oil supplier to India in September, imports of Russian oil fell by 14% from August to 1.8 million bpd. The share of Russian oil in India's total imports dropped to 33.5%, down from 46.6% in August. Deprived of Iranian oil, China turned to Russian crude, competing directly with India for supply.

India has been reducing its crude imports from Russia as the price of Russia's flagship Urals grade loaded in Baltic ports has risen to nearly equal Middle Eastern crudes. A source with an Indian refinery told Reuters that refiners are likely to continue favoring Middle Eastern oil due to pricing and shorter voyages.

Key facts

• India's Middle East oil imports reached 2.8 million bpd in September, up 32% from August.
• Middle Eastern oil accounted for 54% of India's total crude imports last month.
• Russian oil imports fell 14% to 1.8 million bpd, representing 33.5% of total imports.
• Increased shipments through the Strait of Hormuz and ship-to-ship transfers boosted Gulf oil availability.