India’s crude oil imports from Latin America and Africa rose in February as refiners sought alternative sources, fearing disruptions in Russian supplies due to stricter U.S. sanctions. According to trade data, refiners adjusted their procurement strategy to ensure steady supply.
Decline in Russian Oil Imports
Despite being the largest buyer of discounted Russian seaborne oil since Western sanctions on Moscow in 2022, India reduced its Russian oil imports by 3% in February, bringing the total to 1.54 million barrels per day (bpd). Russia’s share in India’s total crude purchases also fell to its lowest level since January 2024.
Shift Towards Latin American and African Suppliers
To compensate for the dip in Russian imports, India boosted its crude oil purchases from Africa and Latin America:
*African imports jumped from 143,000 bpd in January to 330,000 bpd in February.
*South American imports surged 60% to 453,600 bpd in the same period.
This shift coincided with the U.S. imposing broad sanctions in January, targeting Russian producers and tankers, which disrupted global supply chains and limited tanker availability.
Latin America Gains Market Share in India
As a result of these adjustments, Russia’s share in India’s total oil imports dropped to 30.5% in February, while Latin America’s share climbed to 9%, marking its highest level since December 2021.
Rare and New Oil Cargoes Arrive in India
Indian refiners diversified their sources further by importing rare and first-time crude grades:
*A rare cargo of Gabon’s Etame grade arrived in February.
*India imported Argentina’s Medanito oil for the first time.
Rush to Secure Russian Oil Before Sanctions Deadline
Ahead of the February 27 deadline under new U.S. sanctions, Indian refiners accelerated Russian oil purchases. They secured shipments before the restrictions tightened. By the end of February, about six vessels carrying Russian oil arrived at Indian ports and were unloaded in March.
Impact on OPEC and West African Oil Shares
Indian refiners diversified their crude sources. The reduced intake of Russian oil slightly increased the share of oil from OPEC members and West African nations in India’s overall imports for February.
As reported by Reuters.com, India is adjusting to shifting geopolitical dynamics. It continues to prioritize energy security by balancing its imports between cost-effective Russian oil and diversified global suppliers.
