India’s Russian oil imports dip in July as discounts narrow and demand softens

India’s Russian oil imports fell in July as discounts narrowed and seasonal demand softened, with private refiners accounting for most of the purchases. State-run refiners have turned to Middle Eastern and U.S. supplies as Urals discounts declined. For January-July, Russian imports registered a marginal drop, while U.S. inflows rose sharply.

India’s crude oil imports from Russia fell sharply in July after a surge in June, as refiners scaled back purchases amid shrinking discounts and seasonal demand weakness during the monsoon. According to trade sources and data, imports are expected to decline further in August and September as state-run refiners pause their intake of Russian Urals crude, while geopolitical factors also weigh on buying decisions.

In July, the world’s third-largest oil importer and consumer purchased around 1.5 million barrels per day (bpd) of Russian crude, representing a 24.5% drop from the previous month. Despite the fall, Russia retained its position as India’s largest crude supplier, accounting for 34% of total imports. India’s overall oil imports stood at 4.44 million bpd in July, the lowest since September 2023, the data revealed. Iraq and Saudi Arabia followed Russia as the next biggest suppliers.

Private refiners Reliance Industries, Nayara Energy (partly owned by Russia’s Rosneft), and HPCL-Mittal Energy Ltd absorbed nearly 60% of India’s Russian crude imports during July. State refiners, which had been active buyers of discounted Urals earlier this year, trimmed their purchases as discounts offered by Moscow narrowed. This shift was compounded by geopolitical pressures after U.S. President Donald Trump issued a warning to India to avoid buying Russian oil.

Reliance, operator of the world’s largest refining complex at Jamnagar, played a significant role in the decline. The company cut its Russian crude imports by about 19% in July compared with June, when its purchases had been elevated. With demand typically lower during the monsoon season, refiners are recalibrating their sourcing strategies.

State-run refiners have already begun sourcing alternatives from Middle Eastern producers and the United States to make up for reduced Russian volumes. This adjustment is expected to continue through August and September. The shift has boosted the share of OPEC members in India’s crude basket, with Middle Eastern suppliers driving the cartel’s contribution to a five-month high in July.

Over the January-July 2025 period, India’s imports of Russian oil averaged 1.73 million bpd, down 3.6% year-on-year. By contrast, purchases from the U.S. surged by 58%, highlighting the growing role of American crude in India’s supply diversification. The evolving trend signals refiners’ efforts to balance geopolitical risks, supply security, and cost optimization.

Another notable shift was India’s complete absence of Latin American crude imports in July—marking the first such instance since Reuters began compiling monthly data in 2011. Historically, India has relied on Latin American suppliers like Venezuela, Mexico, and Brazil to diversify its crude sources, but logistical costs and narrowing arbitrage opportunities appear to have curbed flows.

India’s reduced appetite for Russian oil in recent months reflects a combination of tighter discounts, seasonal demand fluctuations, and mounting external pressure. While Moscow remains a key partner in New Delhi’s energy mix, the latest trends underscore India’s pragmatic approach to crude procurement—balancing economic benefits with diplomatic considerations and supply flexibility.