India turns to Middle East, new crude sources amid limited Russian oil supply against backdrop of US sanctions: Kpler

India’s total crude oil imports remained strong in the month on account of robust domestic demand.

India’s imports of crude oil from Russia tanked in February after the US slapped fresh sanctions on the country’s oil entities. This meant that the country leant towards suppliers in the Middle East and other geographies for crude oil.

The US on January 10 imposed new sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, as well as on about 180 tankers that form part of the Eurasian country's shadow fleet to curb Moscow’s revenues that Washington said were used to finance the war against Ukraine.

India had imported 1.45 million barrels per day (bpd) of crude oil from Russia till February 23, compared with 1.67 bpd in January, a drop of 13.17 percent, showed data from commodity market analytics firm Kpler.

The shortfall was met by, among others, Saudi Arabia, which supplied 10 percent more crude oil to India at 790,000 bpd till February 23 from to 720,000 bpd in January. Iraq's oil supplies to India remained flat in the period under review, while oil imports from the US stood at 177,000 bpd till February 23, against 293,000 bpd in January.

India also increased oil imports from countries lower down in the production pecking order, such as Colombia, Brazil and Mexico, with imports rising 196 percent, 92 percent and 28.35 percent, respectively, in February from the previous month.

Argentina, as part of a contract with Bharat Petroleum Corporation Limited for 1 million barrels for the month, supplied 30,000 bpd in February, marking the South American country's debut.

Robust demand meant that India’s total crude oil imports remained strong. Crude oil imports stood at 4.91 million bpd till February 23, compared to 5 million bpd in January. Reuters reported in early February that auto fuel consumption for January may have been at levels seen in October the previous year, but were higher on an annualised basis. Moreover, it reported, fuel demand was expected to rise by up to 8 percent in FY26.

Indian total product demand started 2025 at a seasonal high, supported by steady consumption growth, said Sumit Ritolia, senior oil refining analyst, Kpler.

"January demand reached 5.26 mbd (million barrels per day), slightly down from December but up year-on-year, driven by robust LPG (liquefied petroleum gas or cooking gas) and transportation fuel sales. Crude imports have remained strong to meet rising domestic needs, reinforcing India's position as a key driver of refined product growth despite expectations of a slower pace compared to 2024,” said Ritolia.