Indian refiners shift away from pricey Russian crude amid West Asia recovery

Indian refineries are trimming their intake of Russian crude oil as surging prices for Urals barrels exported from the Baltic make them uneconomical compared to alternative sources, industry analysts said. The shift underscores how changing global oil dynamics are reshaping purchasing patterns for India's refining sector, traditionally reliant on Russian supplies.

Urals crude, which has long been a mainstay for Indian refiners seeking discounted barrels, has become less attractive as pricing differentials narrow. The increased cost of Baltic-loaded Russian oil coincides with improving availability from West Asian suppliers, giving refiners more flexibility in their sourcing strategies.

The move reflects broader market adjustments as crude production and export flows normalize across key oil-producing regions. Indian refineries, which process roughly 5 million barrels per day, have historically leveraged Russian discounts to offset higher operational costs and maximize margins.

Analysts expect the trend to continue as long as West Asian crude remains competitively priced and readily available. However, refiners are likely to retain some Russian exposure given long-standing commercial relationships and infrastructure compatibility, maintaining a balanced crude diet rather than entirely abandoning Moscow supplies.