India Adjusts Oil Strategy: Reduces Russian Imports, Boosts Middle East Supply

• India, the world's third-largest oil consumer, is shifting its energy strategy towards 'risk reduction' and 'reliable supply'.
• Russian crude oil imports decreased to 1.1 million barrels per day in early January, down from 1.21 million bpd in December and 2 million bpd in mid-2025.
• The shortfall from Russia is being compensated by increased purchases from Middle Eastern countries like Iraq and Saudi Arabia, with Saudi supply jumping to 924,000 bpd.
• Major Indian refineries (Reliance Industries, HPCL, Mangalore Refinery) temporarily halted Russian oil imports due to US sanctions, except for Nayara Energy.
• Despite regulatory complexities, Russian Urals grade oil remains attractive due to its significant price discount ($5-7 per barrel cheaper than Oman/Dubai grade).

Why It Matters: India is strategically diversifying its oil imports, reducing reliance on Russia while prioritizing supply reliability and cost benefits.