Indian Crude Imports Recover to Pre-Conflict Levels
India’s crude imports from the Gulf region have recovered to around 2.7-3 million barrels per day (b/d) in September, broadly returning to pre-conflict levels, as improving flows through the Strait of Hormuz allowed refiners to increase purchases from Iraq, Saudi Arabia and other Middle-Eastern suppliers, according to data from trade intelligence firm Kpler.
The recovery has been supported by higher flows from Iraq, Kuwait and Saudi Arabia, alongside improving crude movements through the Strait of Hormuz. Sumit Ritolia, senior manager for oil markets and refining at Kpler, told ThePrint that the increase in Middle-Eastern supplies comes after the US-Israel and Iran conflict disrupted crude movements through the Strait of Hormuz, prompting Indian refiners to diversify their sourcing.
Gulf Suppliers’ Contributions
September data shows a significant increase in supplies from key Gulf producers. Iraq contributed around 575,000 b/d, Saudi Arabia around 566,000 b/d, the UAE nearly 480,000 b/d and Kuwait about 331,000 b/d. All Gulf suppliers, except the UAE, saw an increase in volumes compared with August. Supplies from Iraq grew by more than 250 percent, while those from Saudi Arabia increased by around 63 percent.
Ship-to-Ship Transfers and Logistics
Ship-to-ship (STS) transfers and other logistical arrangements have also helped Indian refiners rebuild Middle Eastern purchases as regional supply availability improves. The increase in Gulf supplies has coincided with a sharp decline in Russian crude arrivals. India imported around 1.74 million b/d of Russian crude in September, the lowest since April.
Overall Crude Imports
India’s overall crude imports have averaged around 5.3 million b/d as of 28 September, up about 600,000 b/d from August. The increase comes as refinery maintenance eases, while refiners continue to run at high rates amid healthy domestic fuel demand and strong international product margins. “The increase is being driven both by the need to sustain healthy domestic fuel demand and by export-oriented refiners running at high rates to take advantage of exceptionally strong international product margins and a tight global products market,” Ritolia said.
Russian Crude Imports
Russian crude imports have fallen to their lowest levels since April, with India importing around 1.74 million b/d in September. This decline comes as Indian refiners continue to diversify their sourcing, taking advantage of improving supplies from the Gulf region and other international sources.
Original Article: India’s now importing pre-conflict levels of Gulf crude — Theprint