India's Russian Oil Imports Decline Amid Supply Constraints
India’s crude oil imports from Russia dropped in August, reflecting broader supply challenges that go beyond seasonal refinery maintenance. While Indian refiners typically slow operations during monsoon season, many have delayed planned maintenance due to strong refining margins and resilient domestic fuel demand. This has not been enough to offset the decline in Russian exports, which fell as Ukraine-related security threats and rising shipping costs disrupted Black Sea shipments. Russian crude exports overall declined from 4.1 million b/d in July to 3.7 million b/d in August, with a sharp drop at Novorossiysk port due to Ukrainian drone attacks and logistical risks. Meanwhile, Chinese buyers are increasingly competing for available Russian oil cargoes, adding pressure on India’s access to discounted barrels. The decline raises concerns about whether the trend is temporary or signals a longer-term shift in supply availability and cost. Indian refiners may face higher costs as they seek alternative sources of crude amid tighter global markets.
Topics: crude oil imports global supply chain India refinery maintenance Russia