Archive · 26 Jan 2026
India Shifts Crude Oil Sourcing Strategy
India is changing where it buys its crude oil from.
It's buying less from Russia and more from countries in the Middle East like Iraq and Saudi Arabia.
This is because buying from Russia has become more complicated and risky due to new sanctions.
However, India still finds Russian oil to be a good deal because it's cheaper.
The country is trying to balance getting good prices with making sure it can get the oil reliably.
Some Indian companies have stopped buying Russian oil for now, but others are still buying from non-sanctioned Russian entities.
Overall, India is trying to make sure it has a steady supply of crude oil to meet its needs.
India is shifting its crude oil sourcing strategy to prioritize lower-risk and more reliable supply from the Middle East.
Russian crude oil imports have decreased to 1.1 million barrels per day in January 2026 from a peak of 2 million barrels per day in mid-2025.
Imports from Iraq and Saudi Arabia have increased to 9,04,000 and 9,24,000 barrels per day respectively in January 2026.
Fresh US sanctions on Russian suppliers have led to a slowdown in purchases due to compliance and execution risks.
Indian refiners are buying Russian oil from non-sanctioned entities, and some may resume purchases soon due to the compelling price of Russian crude.
- Who
- India
- What
- Shifting crude oil sourcing strategy
- When
- January 2026
- Where
- India
- Why
- To ensure lower-risk and more reliable supply, with Middle Eastern barrels gaining share as Russian crude flows remain present but increasingly selective and compliance-driven
Pro-Russian Oil Imports
Pro-Middle Eastern Oil Imports
Price and Availability
Pro-Russian Oil Imports
Russian crude oil is cheaper and readily available, making it an attractive option for Indian refiners despite the risks.
Pro-Middle Eastern Oil Imports
Middle Eastern oil from countries like Iraq and Saudi Arabia is more reliable and lower-risk, ensuring a steady supply.
Geopolitical Risks
Pro-Russian Oil Imports
Buying Russian oil involves compliance and execution risks due to fresh US sanctions, which can slow down purchases.
Pro-Middle Eastern Oil Imports
Middle Eastern oil imports are less affected by geopolitical tensions and sanctions, providing a more stable supply.
- Current Russian crude imports
- 1.1 million barrels per day (January 2026)
- Average Russian crude imports (December 2025)
- 1.21 million barrels per day
- Peak Russian crude imports (mid-2025)
- 2 million barrels per day
- Current Iraqi crude imports
- 9,04,000 barrels per day (January 2026)
- Current Saudi Arabian crude imports
- 9,24,000 barrels per day (January 2026)
- Expected Russian crude imports (Q1 2026)
- 1.3-1.5 million barrels per day
- Urals crude discount
- USD 5-7 per barrel below Oman/Dubai grades
Sources
India pivots crude sourcing for certainty, keeps Russian barrels selectively - Telegraph India
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