India’s West Asia oil imports return to pre-war levels in September

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India’s imports of West Asian crude oil surged in September, returning to pre-war levels, while its refiners cut back purchases ‌of Russian oil amid stiff competition with China, ship tracking data showed.

Refiners snapped up spot cargoes as West Asian producers and traders cranked up shipments through the Strait ‌of ⁠Hormuz, easing supply constraints caused by the Iran war.

The ⁠world’s third-biggest oil importer initially raised Russian crude imports to compensate for reduced West Asian supplies at the onset of the war.

India’s crude imports from West Asia jumped in September to ‌about 2.8 million barrels per day, the highest since February, up from 32% in August, the data showed. Gulf oil accounted for about 54% of overall imports.

In contrast, Russian oil ‌imports fell about 14% on month to about 1.8 million bpd in September, with its share of India’s oil purchases declining to 33.5% from 46.6%, the data ⁠showed.

RUSSIAN IMPORTS LIKELY TO STAY SUBDUED

Russian oil purchases by Indian refiners are likely to remain subdued in the coming months as ‌the landed cost of Russian oil is now comparable to that of some West Asian grades, mainly Iraqi oil, said an Indian refining source.

Premiums on Russian oil have narrowed to $1-$2 per barrel against Brent from over $10 in recent months as West Asian supplies hit markets, the source said.

Refiners would prefer to maximise purchases ‌of discounted West Asian crude because voyage times are shorter and some producers have cut selling prices to offset soaring freight costs, the source added.

“We will buy from whoever offers us ⁠better prices,” said this source.