- India's US crude oil imports expected to hit lowest in 20 months in August
- Indian refiners prefer medium-to-heavy sour crude over lighter US grades currently
- Russian crude shipments to India rose 62.4% in July to a record 2.47 million bpd
India's crude oil imports from the US are set to fall to their lowest level in nearly 20 months in August as refiners increasingly favour heavier, sour grades better suited to their refinery configurations, while Russian supplies continue to gain ground.
US crude shipments to India averaged just 52,500 barrels per day (bpd) so far in August, according to Kpler data, putting the country's imports on track for their weakest monthly level in almost two years.
Analysts and industry sources said Indian refiners may prefer medium-to-heavy sour crude over lighter US grades, which are considered a relatively poor fit for parts of India's refinery mix.
The shift comes as refiners seek to optimise crude economics amid disruptions to traditional supply routes.
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The data cited by Reuters reveals Russian crude has increasingly filled the gap. Shipments from Russia rose 62.4% year-on-year to a record 2.47 million bpd in July.
While Kpler data shows Russian imports at around 1.99 million bpd so far in August.
The resurgence in Russian supplies comes as Indian refiners navigate disruptions in the Middle East, including restrictions around the Strait of Hormuz and elevated risks along the Bab-el-Mandeb route.
State-run refiners have also sought alternative supplies, with HPCL and MRPL recently issuing tenders for up to 6 million barrels of crude.
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For Indian refiners, greater reliance on US crude could also mean longer voyages and higher freight costs.
Shipping disruptions around key maritime chokepoints could further raise transportation expenses, making Russian and other geographically competitive grades more attractive.
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