India’s imports of Russian crude fell in August; could fall further in September: Report

India's imports of Russian crude oil fell by 16.5% in August compared to the previous month, reaching about 2.1 million barrels per day. At the same time, supplies from West Asia increased, supported by Abu Dhabi National Oil Company (ADNOC) selling oil from outside the Strait of Hormuz, according to trade data.

According to a report in Reuters, overall, India's oil imports declined by 8.8% in August to 4.44 million barrels per day. Russia remained the top supplier, followed by the United Arab Emirates and Venezuela. Preliminary data from Kpler suggests that India's imports of Russian oil may fall further to 1.9 million barrels per day in September.

ADNOC has enhanced its shipping operations by moving oil from fields inside the Strait of Hormuz to storage and export terminals at Fujairah and Sohar. Besides its own crude, ADNOC is also purchasing oil from neighbouring producers such as Iraq for resale.

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India, the world's third-largest oil importer, saw its imports of Iraqi oil rise by about 25% to approximately 171,000 barrels per day. Imports from the UAE decreased by 5.4% from July to about 620,000 barrels per day, while those from Saudi Arabia, which offered crude from ports outside the Strait, increased by 1.5% to 328,000 barrels per day.

India had increased its purchases of Russian oil following US-Iran tensions that led to a blockade of the Strait of Hormuz. Indian refiners are now looking to spot markets for supplies in October and November amid concerns that purchases from Moscow may need to be reduced if the US imposes tariffs of up to 100% on countries buying Russian oil.

New Delhi, which is negotiating a trade deal with Washington, has stated its firm commitment to ensuring energy security and will continue sourcing supplies from diverse sellers based on market conditions. India has also warned the US that new tariffs on Russian oil purchases could affect bilateral relations.

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Meanwhile, the Kremlin has said further that US sanctions would complicate efforts to reach a peace deal in Ukraine. The US House of Representatives recently passed a sanctions package aimed at increasing economic pressure on Russia over its war in Ukraine, which now awaits the President's signature.

Kremlin spokesman Dmitry Peskov said the sanctions are unfriendly actions that would make peace efforts more difficult. US-mediated talks to end the Ukraine conflict have stalled, but President Trump sent envoys to Moscow and Kyiv earlier this month to revive the process.

The US sanctions target Russia's energy and defence sectors, as well as its tanker fleet that evades existing sanctions, to cut off revenue for the war. The bill also authorises tariffs of up to 100% on China, India, and other countries to reduce their dependence on Russian oil and gas.