India's crude oil imports surged to a record high of about 5.6 million barrels per day in October, with refiners stepping up purchases from the West Asia and Russia despite ongoing geopolitical tensions, according to data from energy intelligence firm Kpler.
West Asian supplies accounted for about 2.3 million barrels per day, and Russian crude flows remained strong at around 2 million bpd, Kpler lead analyst Nikhil Dubey said in a post.
Higher ship-to-ship transfers helped move more crude through the Strait of Hormuz, supporting a recovery in Gulf supplies during September and October and giving Indian refiners greater flexibility in sourcing.
Russian shipments could moderate in November and December as attacks in the Black Sea push up freight rates, making those barrels less competitive on a landed-cost basis. At the same time, Gulf suppliers are offering competitive delivered prices to regain market share in India, Dubey said.
However, any renewed disruption to flows through the Strait of Hormuz could prompt Indian refiners to return to Russian crude, even if transportation costs rise.