India’s crude oil imports from Latin America and Africa increased slightly in February due to refiners seeking alternative sources amid US sanctions. Russia’s share in India’s total oil imports dropped to its lowest since January 2024.
India became the largest buyer of discounted Russian oil after Western sanctions were imposed on Moscow following Ukraine’s 2022 invasion. India’s refiners maximized their purchase of Russian oil ahead of a US-imposed deadline.
In February 2025, Indian refiners adjusted their crude oil sourcing strategies in response to evolving geopolitical dynamics and market conditions. Notably, there was a significant uptick in imports from Latin America and Africa, aimed at mitigating potential disruptions in Russian oil supplies due to heightened U.S. sanctions.
Shift in Import Patterns
India’s crude oil imports from Russia experienced a decline in February. Specifically, imports decreased by 11% compared to the previous month, totaling approximately 1.43 million barrels per day (bpd). This reduction prompted Indian refiners to diversify their sources, leading to increased imports from alternative regions.
Increased Imports from Africa and Latin America
To compensate for the reduced Russian supplies, Indian refiners turned to African and Latin American markets. Imports from Africa rose to around 330,000 bpd in February, up from 143,000 bpd in January. Similarly, imports from Latin America increased by 60%, reaching 453,600 bpd. This strategic shift underscores India’s efforts to maintain energy security amid geopolitical uncertainties.
Diversification of Crude Sources
In their pursuit of diversification, Indian refiners imported grades previously uncommon in their portfolios. For instance, they received a rare cargo of Etame crude from Gabon and, for the first time, imported Medanito crude from Argentina.
Market Dynamics and Pricing
The reconfiguration of import sources has implications for global oil markets. The increased demand for African and Latin American crude could influence pricing dynamics, especially if the trend continues. Additionally, the competition among major oil exporters to secure market share in Asia is intensifying, potentially affecting global oil prices.
Future Outlook
The evolving geopolitical landscape necessitates continuous monitoring of energy sourcing strategies. India’s proactive approach in diversifying its crude oil imports demonstrates resilience and adaptability. As the situation develops, Indian refiners.
Are likely to further optimize their import portfolios to navigate the complexities of the global oil market. Indian Refiners Adjust Oil Imports Amid Geopolitical Shifts. This approach highlights India’s adaptability in sourcing crude oil to ensure a steady supply.
Indian refiners are increasingly sourcing crude oil from Latin America and Africa to diversify supply chains and offset reduced Russian oil imports. This shift comes amid changing global trade dynamics, evolving geopolitical factors, and price fluctuations in the energy market.
Traditionally reliant on Russian crude due to competitive pricing, Indian refiners are now exploring alternative suppliers in Brazil, Guyana, Colombia, Nigeria, and Angola. These regions offer high-quality crude at competitive rates, ensuring energy security and supply stability.
A senior industry official stated, “With market conditions evolving, Indian refiners are strategically expanding their supply network to maintain to all cost efficiency and stable fuel production.”
Additionally, increased crude procurement from Latin America and Africa aligns with India’s long-term energy diversification strategy. Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Reliance Industries are actively negotiating contracts with suppliers in these regions.
Despite the shift, Russian crude remains a key component of India’s imports. However, logistics, shipping costs, and currency trade mechanisms are influencing decisions on sourcing alternatives.
As India seeks to balance affordability and supply security, its growing engagements with Latin American and African crude suppliers signal a broader realignment in global energy trade dynamics.
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