Roydad Naft News Agency – India’s import of Russian oil reached its lowest point in seven months in August as the war in Ukraine escalated and Moscow’s oil discounts decreased. Since the start of the conflict, India had been increasing its purchases of discounted Russian oil, with imports hitting a record high in October. However, preliminary data shows that India has turned to Saudi Arabia as its top oil supplier, with imports from the Gulf nation reaching a multi-month high.

The decline in Indian imports of Russian oil can be attributed to lower discounts offered by Russia, as well as planned maintenance outages at some Indian refineries. Analysts predict that imports of Russian oil will remain subdued for the next few months, putting pressure on suppliers to offer deeper discounts.

In recent months, India’s import of Russian oil has been decreasing due to shrinking discounts from the European nation. In August, imports from Russia fell by 20% from July, while imports from Saudi Arabia increased by 63%. Indian refiners may further reduce imports of Russian oil as narrowing discounts make the price of Russian grades expensive compared to the ceiling set by Western nations.

India could potentially turn to the United States for its oil needs, as the OPEC producer group is cutting oil output. Additionally, India’s fuel demand is expected to rise in the coming months due to major festivals, which could lead to increased oil imports from the Middle East.

These changing dynamics in India’s oil economy could also impact the bilateral relationship between New Delhi and Moscow. While Russia and India are part of the BRICS coalition, which includes Saudi Arabia, there are signs of a diplomatic shift as Vladimir Putin will not be attending the India-hosted G20 summit. Furthermore, the addition of Iran and the UAE to the coalition in January could further reshape the oil landscape.

Sources:
– Refinitiv
– Kpler
– Reuters