India's Crude Oil Imports Jump 16% in September Amid Shift in Supply Sources

India's crude oil imports surged in September, climbing 16% from the previous month to 22.26 million metric tons, according to data released Friday by the Petroleum Planning and Analysis Cell (PPAC). The figure also represents a 9% increase compared to the 20.35 million tons imported in the same month last year, signaling robust demand from the world's third-largest oil consumer.

Shifting Supply Dynamics

The increase in total imports occurred even as volumes from Russia, a top supplier, declined. According to separate trade source data, Russian oil imports to India fell 13.7% from August to approximately 1.8 million barrels per day in September. Russian barrels accounted for about one-third of the country's total crude purchases during the month.

Analysts suggest this change reflects a rebalancing of India's import sources. "The increase in imports has been largely driven by the return of Middle Eastern barrels and lower Russian volumes, reflecting a normalization of India’s crude slate as Gulf supply availability recovers," said Giovanni Staunovo, an analyst at UBS.

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Domestic Demand and Product Trade

The rise in crude imports corresponds with higher domestic energy use. Earlier data showed that India's fuel consumption in September grew 3.9% from August to 19.26 million metric tons. The PPAC report also provided details on refined products:

• Oil product imports decreased by 0.8% from August and fell sharply by about 40% compared to September of last year.
• Product exports rose by more than 6% on an annual basis to 5.22 million tons.
• LPG imports increased to 1.40 million tons from 1.30 million tons in August, while fuel oil imports plummeted nearly 99% year-over-year.