India's Middle East Oil Imports Jumped 32% in September

India’s crude oil imports from the Middle East rose sharply in September. They reached 2.8 million barrels per day, up 32% from August. Middle Eastern supplies represented 54% of India’s total crude oil imports, making the region the dominant source that month.

The increase reflected better availability of Gulf crude. Gulf producers managed to move larger volumes through the Strait of Hormuz, including through ship-to-ship transfers in the Gulf of Oman. Indian refiners also bought more spot cargoes as those supplies became available.

This shift mattered because Russian oil imports moved in the opposite direction. India imported 1.8 million barrels per day from Russia in September, down 14% from August. Middle Eastern oil became more attractive because its prices were competitive and voyages from the Gulf of Oman to India were shorter.

The Strait of Hormuz is a narrow sea passage at the entrance to the Persian Gulf, connecting Gulf oil producers with the Gulf of Oman and wider shipping routes. The article does not provide a geographic definition, but it identifies the strait as the route used to move Middle Eastern crude toward India.

Its importance comes from the volume of oil passing through it. In September, Gulf producers managed to send increasingly larger crude volumes through the strait. Some cargoes used ship-to-ship transfers in the Gulf of Oman before continuing toward India, helping Indian refiners obtain more Middle Eastern supplies.

That improved flow changed India’s import mix. Middle Eastern imports climbed to 2.8 million barrels per day, or 54% of total imports. If flows through the strait remain available and prices stay competitive, Indian refiners are likely to keep favoring Gulf crude.

Indian refiners received more Middle Eastern oil in September because larger crude volumes managed to exit the Strait of Hormuz. The article links this improvement to Gulf producers finding ways to move increasingly higher volumes through the waterway. That restored Middle Eastern imports to their highest level for India since February.

A key mechanism was ship-to-ship, or STS, transfer activity in the Gulf of Oman. Oil cargoes could be transferred between vessels there as part of the shipping process. The article reports that Gulf producers used these transfers while moving more crude beyond the strait, making additional supplies available to Indian buyers.

Indian refiners responded by buying more spot cargoes. Middle Eastern imports reached 2.8 million barrels per day in September, up 32% from August. The improved availability also mattered because Middle Eastern crude offered competitive pricing and shorter voyages than Russian supplies.

India’s Russian crude imports fell because refiners buy according to economics, not simply supplier loyalty. In September, Russia was still India’s largest individual supplier, but its volumes dropped 14% from August to 1.8 million barrels per day. Russia’s share of Indian imports fell from 46.6% to 33.5%.

Two pressures changed the calculation. China, deprived of Iranian oil, turned to Russian crude and competed directly with India for available Russian supply. At the same time, Russia’s flagship Urals grade loaded in Baltic ports became more expensive, nearly matching the prices of Middle Eastern crude.

Middle Eastern oil therefore became a stronger alternative. Its availability improved as more barrels moved through the Strait of Hormuz, and voyages from the Gulf of Oman to India were shorter. Indian refiners are likely to keep preferring Middle Eastern oil when it is available at favorable prices.

China’s stronger demand reduced India’s advantage in buying Russian crude. The article says China was deprived of Iranian oil and therefore turned to Russian supplies. This placed Chinese and Indian refiners in direct competition for Russian oil cargoes.

The effect appeared in India’s September import figures. Russia remained the largest single supplier, but India’s Russian crude imports fell to 1.8 million barrels per day, down 14% from August. Russia’s share of India’s total imports also dropped sharply, from 46.6% to 33.5%.

Competition was not the only factor. India’s refiners also responded to price signals. Urals crude loaded in Baltic ports became nearly as expensive as Middle Eastern grades, while Middle Eastern availability improved. With China competing for Russian barrels and Gulf cargoes offering shorter voyages, Indian buyers had stronger reasons to shift toward Middle Eastern oil.

Refiners choose crude by comparing the full cost and practical value of each cargo. The purchase price is central: cheaper oil can improve refinery economics, while an expensive grade can lose its advantage. The article says economics have always driven Indian refiners’ purchases.

Voyage length matters because tankers traveling shorter distances can reach the refinery sooner and generally spend less time and fuel in transit. In this case, Middle Eastern cargoes moving from the Gulf of Oman to India had shorter voyages than Russian cargoes loaded at Baltic ports. The article specifically identifies this shorter route as an advantage.

In September, Urals prices rose until they nearly equaled Middle Eastern crude prices. At the same time, Gulf supplies became more available. Indian refiners therefore had both a price reason and a transport reason to prefer higher volumes of Middle Eastern oil when those cargoes were available.

Crude oil is a naturally occurring liquid mixture of hydrocarbons extracted from underground reservoirs. It is not one finished product. Its composition varies, so refineries select and process different crude grades to make products suited to transport, industry, power, and other economic needs.

Refineries first heat crude in a distillation unit. Different components separate according to their boiling points. Heavier portions can then be converted into lighter, more useful products through processes such as cracking. Other treatments remove impurities and improve the quality of fuels. These steps produce gasoline, diesel, jet fuel oil, lubricants, and petrochemical feedstocks.

The article focuses on India’s choice of crude suppliers, not on refining technology. Its key point is that refiners compare costs and logistics. Middle Eastern crude became more attractive when availability improved, prices were competitive, and voyages from the Gulf of Oman were shorter than Russian routes.