India's crude oil imports fall to near 18-month low
What's the story
India's crude oil imports fell by 8.7% in July, hitting a near 18-month low at 18.56 million tons. This decline marks the lowest import level since February 2024 and comes amid a broader drop in fuel demand, which also fell by 4.3% during the same period. The year-on-year (YoY) comparison shows a similar trend with crude imports down by 4.3% and product imports falling by as much as 12.8%.
Tariff effects
US tariff threats over Russian oil purchases impact imports
The decline in India's crude oil imports could be due to the US's tariff threats over Russian oil purchases. The country is the world's third-largest oil importer and consumer, making these figures a major indicator of its oil demand. Despite the tariff threats, state-run refiners Indian Oil and Bharat Petroleum have resumed buying Russian oil for September and October delivery after discounts widened.
Consumption drop
Fuel consumption declines in July
India's fuel consumption also took a hit in July, falling by 4.3% month-on-month to 19.43 million tons. The data was released by the oil ministry and shows a decline in demand for crude oil products as well. Product exports from India fell by 2.1% during this period, further highlighting the impact of these changes on the country's overall trade balance.
Trade stance
India to address future trade relationship with US
Despite the challenges posed by US tariffs, India plans to address its future trade relationship with the United States with a "very open mind." This was announced by Trade Minister Piyush Goyal just days before heavy extra US tariffs are due to hit imports from India. Nayara Energy, an Indian refiner backed by Russia and under European Union sanctions, has been relying on a dark fleet for importing oil and transporting refined fuels amid these sanctions.