Reliance, IOC and Nayara see notable cuts in Russian crude supplies

Indian refiners have markedly scaled back Russian crude purchases in September, according to a recent CRE report. Reliance Industries’ Jamnagar refinery reported a 27 percent drop, Indian Oil Corporation’s Paradip refinery a 21 percent fall, and Nayara Energy’s Vadinar refinery an 8 percent decline.

Overall, Indian imports of Russian crude fell 13 percent, marking the second consecutive month of reduction and the lowest level since April.

The slowdown coincides with heightened Red Sea and Hormuz Strait tensions, which have increased freight costs and tightened supply routes, feeding into higher global oil prices.

India remains the world’s second‑largest buyer of Russian fossil fuels, importing €4.1 billion of hydrocarbons in September, 88 percent of which was crude oil. Only China exceeds this volume.

Since December 2022, India has accounted for 37 percent of Russia’s crude export market, while China dominates with a 50 percent share.

A U.S. executive order issued on Friday lifted various sanctions and fees on Russian oil, a move presented as serving U.S. national interests and providing relief to India and China.

The price of Urals crude surged 32 percent month‑on‑month to $90.7 per barrel – the highest monthly average since April 2026 and far above the $44.1 price ceiling imposed by the EU and the UK.

Oil flows through the Hormuz Strait rose more than 60 percent month‑on‑month, but global fuel prices stay elevated, albeit below the levels observed before the U.S.–Israel‑Iran confrontation.

Higher oil and gas prices after the regional conflict have added roughly $35.9 billion to Russia’s maritime export earnings over the subsequent six months.