More Stories

Informist, Wednesday, Sept. 3, 2025

 

Please click here to read all liners published on this story

--Kpler: India's crude oil imports fall on month to 4.5 mln bpd in August 
--Kpler: India's crude oil imports from Russia in August at 1.7 mln bpd 
--Kpler: India Aug crude oil imports from Russia up 6% on month, dn 4% on yr 
--Kpler: Iraq 2nd largest crude oil supplier to India in Aug at 743,000 bpd 
--Kpler: Saudi Arabia 3rd largest oil supplier to India in Aug at 644,000 bpd 
--Kpler: India's crude oil imports from US at 230,000 bpd in August 
--Kpler: India Aug crude oil imports from US down 37% on month, 38% on year

 

By Pallavi Singhal and Ashutosh Pati

 

NEW DELHI/MUMBAI – The real impact of additional US tariffs, payment hurdles, and shipping issues related to India's crude oil imports from Russia will only become visible from late September, according to Sumit Ritolia, lead research analyst, refining and modelling, at Kpler.

 

This is because deals are typically fixed 6-8 weeks in advance, meaning August and early September arrivals will reflect agreements in July. The US's additional 25% tariffs on Indian goods came into effect on Aug. 27 for maintaining a trade relationship with Russia, especially for procuring crude oil.

 

Russian loadings to India in August, which will reach India in Sept-Oct, are tracking about 25% lower month-on-month at 1.25 million barrels per day, as per Ritolia. "This figure may still change as several vessels currently bound for Port Said could update their final destinations en route through the Suez Canal—a key transit route, as all Russian flows to India in July passed through Suez. August cargoes are expected to discharge in September and October, and vessel tracking over the next weeks will provide more clarity," he said.

 

Kpler also noted that there has been an increase in undisclosed cargoes departing Russian ports. "Many of these tankers discharged their last two to three shipments in India, suggesting continued strong flows, though diversions to other Asian buyers remain possible," Ritolia said. Kpler is a data and analytics provider for global trade, specialising in energy and shipping markets.

 

In August, India's total oil imports shrunk on month to 4.5 million barrels per day, down from 4.7 million barrels per day in July. However, crude oil imports from Russia rose around 6% on month but were down 4% on year at 1.7 million barrels per day. Russian crude accounted for nearly 37% of India's oil import basket in August, up from around 34% in July but down from 45% it held in June.

 

West Asia continued to play a significant role in India's crude oil imports in August. Iraq was India's second-largest supplier, supplying 743,000 barrels per day of crude, followed by Saudi Arabia at 644,000 barrels per day, and the United Arab Emirates at 622,000 barrels per day. Inbound shipments from the US slipped to 230,000 barrels per day, down 37% on month and 38% on year. 

 

Meanwhile, despite some disruptions faced by Russian oil giant Rosneft-backed Nayara Energy Ltd. due to the EU's 18th sanctions, Indian refined product exports remain stable and robust. Saudi Aramco and Iraq's SOMO Oil did not sell crude oil to India's Nayara Energy in August after European Union imposed sanctions on the Russia-backed refiner, as per a Reuters report. Confirming the same, Ritolia said that even though Nayara's operations have been impacted by the sanctions, which have affected its shipping and payment channels, the refinery is expected to adapt and manage these issues in the coming months and is likely to increase its reliance on Russian barrels.

 

As for the upcoming festive season between October to December, Ritolia sees strong Indian refinery operations, with lower maintenance compared to last year. "European buyers are likely to accelerate their purchases from India during the festive season, given the high maintenance schedules of Middle Eastern (West Asian) refineries during the same period. This underscores India's pivotal role as a swing supplier of middle distillates to Europe," Ritolia said. 

 

OUTLOOK

Looking ahead, Indian refiners are expected to pursue greater diversification to balance affordability with energy security. Russian barrels remain the cheapest option and refiners are unlikely to leave even $1 per barrel discount on the table without a formal directive from New Delhi, Ritolia believes. "India is unlikely to abruptly pivot away from Russian crude," he said. For now, it is business as usual, though with greater caution and an eye on diversification as energy security takes center stage, he said.  End

 

US$1 = INR 88.06

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.