New Delhi (Economy India): India’s crude oil imports from Russia rose to a five-month high in November, increasing 4% month-on-month to reach €2.6 billion, according to new data released by the Centre for Research on Energy and Clean Air (CREA). The report highlights that India remained the second-largest buyer of Russian crude, after China, during the month.
The rise in imports comes despite global price fluctuations, shifting geopolitics, and ongoing Western restrictions on Russian energy trade. With discounted Russian barrels continuing to offer economic advantages, Indian refiners have maintained strong purchase levels.
Refined Fuels Exported to Australia in Large Volumes
CREA’s analysis shows that a significant share of refined fuels produced from Russian-origin crude in India was exported to Australia, a country that has officially halted direct imports of energy supplies from Russia.
Indian refiners, which operate some of the world’s most sophisticated oil-processing complexes, continue to benefit by:
- Purchasing discounted Russian crude
- Refining it into high-value products
- Exporting fuels to global markets
This trade pattern underscores India’s strengthening position as a key global refining hub.
India Remains Russia’s Second-Largest Crude Buyer
In November, India maintained its spot as Russia’s second-largest crude oil market, trailing only China. Since early 2022, discounted Russian crude has become a major contributor to India’s energy basket.
Why Indian refiners prefer Russian crude:
- Significant price discounts
- Long-term supply assurances
- Better margins on refined product exports
- Flexibility in crude grades suitable for Indian refineries
India, the world’s third-largest oil consumer, relies on imports for over 85% of its crude needs, making pricing advantages crucial.
Geopolitical and Market Implications
The evolving energy dynamics highlight several broader trends:
Shifts in global oil trade
Western restrictions have redirected Russian crude flows toward Asia, primarily India and China.
India’s rising influence
With its large refining capacity, India is increasingly shaping:
- Regional fuel prices
- Crude sourcing strategies
- Global product supply chains
Strategic balancing
India continues to strike a careful diplomatic and economic balance between:
- Securing affordable energy
- Managing global geopolitical pressures
- Maintaining long-term energy security
CREA’s Observations
The CREA report emphasizes:
- Russia remains a major supplier of crude to India.
- India’s November purchases are at their highest level since June.
- Refiners are exporting substantial volumes of refined products to Europe and the Asia-Pacific region.
India’s rising imports of Russian crude in November reaffirm the country’s strategy of cost-effective energy procurement amid global uncertainty. With refiners taking advantage of favorable pricing and strong export demand—especially from markets like Australia—India continues to strengthen its position as a critical player in the global oil supply chain.
(Economy India)
