Crude oil imports by Indian refineries reached 5.54 million barrels per day (b/d) in October 2023, the highest recorded level in the country's history. This increase was driven by improved access to crude oil and high seasonal demand, especially due to the festivities.
Import Trends and Global Impacts
Crude oil imports in October increased by 9% compared to September and also compared to the same month last year. S&P Global Commodities data shows that the monthly average imports this month surpassed the previous record of 5.50 million barrels per day in March 2025. Russian crude oil imports in October reached nearly 2 million barrels per day, although this is a decrease from the peak of 2.43 million barrels per day in June.
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Refineries in India have capitalized on the increased oil supply from the Middle East, particularly from Saudi Arabia and Iraq. This allows them to bolster their reserves in response to rising seasonal demand. According to Pramashish Das, Executive Director of Oil Analytics at S&P Global Energy, the current conditions enable refineries to optimize their utilization rates and increase exports to foreign markets.
Impact of Sanctions and Resource Diversification
On October 16, the U.S. government issued a waiver that reduced the risk of additional actions against buyers of Russian crude oil. This waiver allows India to continue importing Russian crude oil without facing immediate penalties or additional tariffs. However, this waiver is not permanent and may be revoked in the future.
Nonetheless, global competition and high shipping costs could pose new challenges for Indian refineries. Analysts believe that refineries may seek to diversify their oil sources to mitigate future sanction risks. According to Saransh Katiyar, a major liquids analyst, this could lead to increased imports from other countries, including the United States and Angola.
Crude oil imports from the United States averaged 125,000 barrels per day in 2026 and reached 150,000 barrels per day in October, a 16% increase compared to September. This trend reflects the efforts of Indian refineries to meet domestic and international needs in a changing market environment.
Overall, given the high domestic demand and improving market conditions, India's crude oil imports are expected to remain at high levels in the near future. As refineries seek to maximize their capacities, this could contribute to increased exports and meet domestic needs during the upcoming festive seasons.
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