In February, Indian refiners increased their crude oil imports from Latin America and Africa, seeking alternatives to Russian oil due to heightened U.S. sanctions. Data from trade sources indicates a cautious approach, as Indian refiners look to secure supplies amidst concerns over potential disruptions to Russian oil availability. Following the sanctions imposed in response to Russia’s invasion of Ukraine in 2022, India emerged as the largest buyer of discounted Russian seaborne oil.
Despite this, data shows that imports of Russian oil decreased by 3% from January, amounting to approximately 1.54 million barrels per day (bpd). Consequently, Russia’s share of India’s overall crude oil purchases fell to its lowest level since January 2024. Notably, the increase in oil imports from Africa rose significantly from 143,000 bpd in January to 330,000 bpd in February.
Furthermore, South American imports surged by 60%, reaching 453,600 bpd. The U.S. sanctions imposed in January targeted Russian producers and their tankers, which disrupted supply chains from the world’s second-largest oil producer. This led to Russia’s share of India’s total oil imports declining marginally to 30.5% while the share from Latin America increased to 9%, the highest level since December 2021.
Last month, India also received a shipment of Gabon’s Etame grade oil and, for the first time, imported Argentina’s Medanito oil. In anticipation of the February 27 deadline for settling some energy transactions under the new U.S. sanctions, Indian refiners maximized their purchases of Russian oil. Approximately half a dozen vessels loaded with Russian crude arrived at Indian ports late in February and were offloaded in early March.
The reduced intake of Russian oil resulted in a slight increase in the share of oil imports from OPEC members and West African countries.