Reliance Industries Limited (RIL), one of the largest companies in India and the operator of  the biggest refining complex in the world at Jamnagar, has cut down its imports of Russian  crude oil in November. A report from Reuters indicates that the company’s intake from  Russia dropped by nearly 17% compared to the previous month, reaching about 459,000  barrels per day (bpd). This is the lowest amount of Russian oil Reliance has purchased in the  last nine months. 

This decrease in imports follows the end of Reliance’s long-term crude supply agreement  with the Russian oil company Rosneft. According to information from Reuters, Reliance  stopped placing new orders after the contract expired and loaded its last shipment under this  agreement on November 12. Previously, Reliance had been importing close to 500,000 bpd of  Russian crude each year, making Russia an important supplier for the company in recent  years. 

Change in sourcing strategy 

With the reduction in Russian crude, Reliance adjusted its sourcing strategy in November by  increasing its reliance on suppliers from West Asia. Crude imports from this region rose by  about 41% compared to October, reaching nearly 681,000 bpd. Countries like Iraq, Kuwait,  and Saudi Arabia saw significant increases in their supply to the Indian refiner, showing a  strategic shift as the long-term Russian supply ended. 

This change demonstrates how refiners are adapting to new supply contracts and geopolitical  factors while ensuring a steady supply of feedstock for large refining operations like  Jamnagar.

Trends among global suppliers 

In contrast to the rise in imports from West Asia, crude sourcing from Latin America fell  sharply in November, decreasing by over 30% compared to October. Shipments from Africa  were minimal, indicating little reliance on that continent during the month. 

North American crude imports showed mixed trends. While supplies from the United States  varied, Canada remained a consistent and reliable supplier for Indian refiners, including  Reliance. These changes highlight the flexible and varied procurement strategies of Indian  refiners in response to shifting global oil trade patterns. 

India’s overall Russian crude imports remain strong 

Even though Reliance reduced its Russian imports, India’s total crude oil imports from  Russia increased in November. Data showed that India imported around 1.77 million bpd of  Russian crude during the month, a 3.4% rise from October. Russia continued to be India’s  largest crude oil supplier, making up more than one-third of the country’s total imports. 

According to Reuters, ongoing purchases by public sector oil companies and other private  refiners helped balance the reduction in volumes from Reliance. This collective buying  ensured that India’s overall dependence on Russian crude stayed high, despite individual  refiners changing their sourcing strategies. 

West Asia remains key to India’s import strategy 

Overall, West Asia continued to play a crucial role in India’s crude sourcing, supplying more  than 2.27 million bpd in November. Iraq and Saudi Arabia were the main contributors, and  imports from the UAE and Kuwait also increased compared to the previous month. 

The strong supply from West Asia, along with selective imports from Russia, reflects India’s  balanced approach to energy security. By maintaining diverse sourcing options, Indian  refiners aim to manage price fluctuations, ensure stable supply, and effectively navigate  changing global energy dynamics.