India’s crude oil import pattern shifted notably in September 2026, with shipments from West Asian producers rising sharply even as volumes from Russia, the country’s largest single supplier in recent months, declined for the second consecutive month. Provisional tanker tracking data shows that improved logistics, particularly ship-to-ship transfers, enabled higher flows of Gulf crude through the strategically sensitive Strait of Hormuz. The development provided Indian refiners with greater supply flexibility at a time of ongoing geopolitical uncertainty.
West Asian suppliers including Iraq, Saudi Arabia, Kuwait and Qatar increased deliveries to Indian ports. Iraq’s shipments rose substantially on a sequential basis, while Saudi Arabia, Kuwait and Qatar also recorded strong month-on-month gains. The United Arab Emirates was the main exception among major Gulf producers, registering a decline. Collectively, West Asian crude accounted for a significantly higher share of India’s total imports in September compared with August, recovering toward levels seen before the intensification of regional tensions earlier in the year.
Role of Ship-to-Ship Transfers
The recovery in West Asian volumes was supported by expanded use of ship-to-ship transfer operations. These transfers allow crude loaded in the Persian Gulf to be moved onto other vessels in safer waters, such as areas off Oman or closer to India’s west coast, thereby reducing the need for individual tankers to remain exposed for extended periods inside the Strait of Hormuz. Industry analysts noted that higher STS activity helped Gulf producers fulfil term contracts and enabled Indian refiners to secure larger allocations from traditional suppliers.
The Strait of Hormuz remains a critical chokepoint for global oil trade, and regional security concerns have periodically constrained tanker movements. By adapting logistics through STS operations, exporters and charterers mitigated some of those constraints, allowing more barrels to reach Asian markets, including India. Direct deliveries by very large crude carriers to Indian ports or nearshore transfers also emerged as complementary options in some cases.
Decline in Russian Crude Arrivals
In contrast, India’s imports of Russian crude fell to their lowest level in several months. After peaking earlier in the summer, Russian volumes eased in August and declined further in September. Two main factors contributed to the reduction. First, Chinese refiners intensified their purchases of available Russian grades, creating stronger competition for the same cargoes. Second, Ukrainian attacks on Russian oil and gas infrastructure disrupted loading activity at key terminals, tightening overall export availability.
Russia had accounted for a dominant share of India’s crude basket in preceding months, at times exceeding half of total imports. The sequential decline brought its share lower, though it remained a major source. Indian refiners responded by increasing purchases from West Asia and also drawing on other origins such as African and Venezuelan grades, demonstrating the flexibility built into the country’s procurement strategy.
Broader Energy Security Context
The improved availability of West Asian oil has been viewed as a stabilising factor for India. The country continues to prioritise meeting the energy requirements of its large population through diversified sourcing. Official statements have consistently emphasised that energy security remains the primary consideration guiding import decisions. The ability to shift between suppliers based on price, availability and logistical feasibility has allowed refiners to maintain high utilisation rates even as individual supply streams fluctuated.
At the same time, the United States has increased pressure on major buyers of Russian oil. The Lindsey O. Graham Sanctioning Russia and Iran Act, recently enacted, authorises the US President to impose tariffs of up to 100 per cent on goods from countries that rank among the largest importers of Russian crude or natural gas and continue such purchases. India and China currently top the list of such buyers. While the law provides discretionary authority rather than an automatic trigger, it has introduced an additional layer of uncertainty around the medium-term outlook for Russian oil flows to India.
Indian refiners have already begun adjusting their forward procurement plans in light of both supply constraints and the potential for secondary measures. The September data illustrates that the system is capable of responding: when Russian volumes tightened, West Asian and other barrels filled the gap without a corresponding drop in overall import levels. Total crude imports for the month rose compared with August, supported by strong domestic refining demand.
Implications for the Coming Months
Looking ahead, the balance between West Asian and Russian supplies will depend on several variables. These include the pace of recovery in Hormuz transit, the intensity of Chinese buying of Russian grades, the operational status of Russian export infrastructure, and any concrete application of US tariff authority. STS operations and alternative routing arrangements are likely to remain important tools for Gulf exporters as long as security risks persist in the region.
For India, the September shift underscores both the risks and the resilience of its oil import strategy. Dependence on any single origin carries exposure to geopolitical or logistical disruptions. The demonstrated ability to ramp up purchases from traditional Middle Eastern suppliers, facilitated by adaptive shipping practices, has provided a buffer. Continued diversification, combined with careful monitoring of global price differentials and policy signals, will remain central to ensuring stable and affordable energy supplies.
The data for September therefore reflects a pragmatic recalibration rather than a permanent realignment. West Asian crude has regained share through improved logistics, Russian volumes have eased under competing demand and supply constraints, and Indian refiners have navigated the transition while keeping overall imports elevated. How these trends evolve in the final months of the year will depend on the interplay of market forces, infrastructure security and international policy developments.
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