India's Crude Oil Imports Jump 16% in September on Middle East Supply Return

India's crude oil imports surged in September, rising 16% from the previous month as the nation's refiners increased purchases from traditional Middle Eastern suppliers. The rebound coincided with a notable decline in discounted shipments from Russia, signaling a potential shift in the country's sourcing strategy.

Key Import Figures

According to official data released Friday by the government's Petroleum Planning and Analysis Cell (PPAC), India imported 22.26 million metric tons of crude oil in September. This represents a significant increase both month-over-month and year-over-year.

• Monthly Growth: Up 16% from August.
• Annual Growth: Up approximately 9% from 20.35 million metric tons in September of the prior year.

The rise in imports corresponds with higher domestic demand, as previously released data showed India's fuel consumption rose 3.9% in September from August to 19.26 million metric tons.

Shifting Supply Dynamics

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The increase in overall imports was driven by a rebalancing of supply sources. According to separate trade data released Thursday, India's crude imports from Russia fell 13.7% in September from the previous month to about 1.8 million barrels per day. Russian oil accounted for roughly one-third of India's total crude imports during the month.

"The increase in imports was driven by the return of Middle Eastern crude oil supplies and lower Russian crude oil shipments," said Giovanni Staunovo, an analyst at UBS. He added that the data reflects a "normalization of India's crude procurement structure as Gulf supply capacity gradually recovers."

Refined Products and Other Fuels

While crude imports climbed, the PPAC data showed a mixed picture for refined products. Imports of petroleum products fell by 0.8% from August and were down a substantial 40% compared to the same month last year.

Conversely, exports of finished petroleum products grew by over 6% year-over-year to 5.22 million metric tons. In other data, liquefied petroleum gas (LPG) imports rose to 1.4 million metric tons from 1.3 million in August, while fuel oil imports collapsed by nearly 99% year-over-year to just 10,000 metric tons.