India maintains position as top buyer of Russian seaborne crude

India remains the largest buyer of Russian seaborne crude, averaging approximately 1.8 million barrels per day this year. In September, Indian imports reached roughly 1.82 million barrels per day, outpacing China, which averaged 1.49 million barrels per day. Analysts from Kpler expect October volumes to remain steady between 1.8 and 1.9 million barrels per day.

Demand for Russian oil is largely driven by significant price discounts. In September, Urals-grade crude traded at an average discount of $23 per barrel compared to Brent. This pricing advantage has helped Russian supplies replace other sources and has allowed Indian refiners to improve margins by processing the crude into refined products like diesel for domestic use and export.

India’s reliance on Russian energy has grown significantly since February 2022. Prior to the invasion of Ukraine, Russia accounted for less than 2% of India’s crude imports, but its market share has periodically risen to between 40% and 50%.