Refiners rebalance oil sourcing strategy

WEST ASIAN GRADES FINDING FAVOURS: KPLER

- SAURAV ANAND

INDIA'S CRUDE OIL import story is entering a phase of fine-tuning rather than forceful shifts. After months of heavy reliance on discounted Russian barrels, Indian refiners are quietly rebalancing their sourcing strategy—bringing the West Asia back to the centre of the crude basket as Russian volumes ease.

Kpler data up to January 20 shows higher intake from Iraq and Saudi Arabia stepping in as a stabilising anchor, even as Russia remains a key supplier. This recalibration highlights a growing emphasis on execution certainty, compliance comfort, and operational flexibility amid an increasingly complex global oil market.

Russian crude imports rose sharply through the final quarter of 2025, climbing from about 1.62 million tonne in October to a peak of around 1.84 million tonne in November, as Indian refiners maximised discounted barrels. The trend, however, reversed in December, with imports falling to around 1.22 million tonne, before easing further to about 1.11 million tonne in January 2026 (till January 20), Kpler data shows.