As the world struggles to adjust with the evolving trade and geopolitical scenarios, India’s strategy to diversify its crude oil import sources aided domestic refiners to source barrels from Africa and South America during February 2025 as US sanctions impacted Russia’s seaborne oil cargoes.
According to the trade numbers from global real-time data and analytics provider Kpler, Indian refiners from the first time in last six months turned to countries such as Argentina, Algeria, Gabon, Libya and Congo.
India’s crude oil import dynamics are evolving amid shifting geopolitical landscapes, emphasised Sumit Ritolia, Kpler’s Lead Research Analyst for Refining & Modeling,
A top government official said “India’s pivot to countries such as Argentina, Gabon and Guyana is part of its long term strategy to diversify procurement sources and explore avenues for domestic E&P firms to invest in producing assets in these regions, which offer huge untapped hydrocarbon resources.”
For instance, India for the first time procured Argentina’s Medanito, a light sweet grade of crude oil, which is equivalent to the US’ West Texas Intermediate (WTI). It also procured the heavy-to-medium grade Etame from Gabon, which can act as an alternative to heavy crudes such as Venezuela’s Merey, the official added.
Diversifying sources
In November 2025, Prime Minister Narendra Modi travelled to Nigeria, Brazil, and Guyana, highlighting the push to diversify energy sources and expanding partnerships in hydrocarbon trading. It was the first visit by an Indian Prime Minister to Nigeria in 17 years and to Guyana since 1996.
Last month, Oil Minister H S Puri said India diversified its crude procurement sources from 27 to 40 with Argentina being the latest addition.
In the last six months, Kpler data shows that India imported crude from African countries such as Cameroon, Algeria, Libya, Congo and Gabon. In South America, imports came from Argentina. The world’s third largest importer also sourced stocks from Asian nations like Turkey and Brunei.
West African crude oil grades being cheaper than Middle Eastern also helped push up imports from Africa, albeit marginally, trade sources said.
As shipments from Russia slipped to a low of 1.45 million barrels per day (mb/d) last month, Indian refiners increased cargoes from Africa to 304,000 b/d and South America to 461,000 b/d provisionally. Middle East was the main supplier at around 2.44 mb/d.
Kpler’s Ritolia pointed out that India’s crude basket diversification is evident from BPCL’s procurement of Medanito crude from Argentina and the increasing inflows of US crude—signalling renewed energy diplomacy between Washington and New Delhi.
“West African and Latin American suppliers are also gaining traction as refiners hedge against volatility in Russian barrels. Additionally, US tariffs on Mexican and Canadian crude imports into the US could redirect volumes to India. Major private refiners in India, which have experience processing these complex crudes, may take advantage of this opportunity, further diversifying India’s crude sources,” he explained.
Ritolia noted that Russia remains India’s top supplier in 2025.
“However, with India’s total crude demand starting the year strong—reaching 5.26 mb/d in January—diversification efforts will likely continue to ensure supply security amid ongoing market uncertainties,” he added.
Evolving landscape
Higher imports from Middle East is also reflective of state-run refiners fulfilling term volumes in Q4 (FY25) to meet MoU commitments, Kpler indicated.
Looking ahead, said Ritolia: “Expectation of lower Russian arrivals in March and April is set to benefit Middle Eastern suppliers, particularly Iraq and Saudi Arabia, given their ability to provide medium sour grades as alternatives to Urals. While near-term Russian volumes are unlikely to reach the peaks observed in 2023-24, refiners and traders will adjust accordingly, seeking competitive alternatives.”
Besides, the stance of the incoming Donald Trump administration on Ukraine-related sanctions will be a key factor influencing Russian crude’s competitiveness, he explained.
Trade sources said that Saudi Arabia slashing prices of its flagship Arab Light grade for Asian buyers in April, a first in three months, is as expected by the market. This is also the first cut post the decision of OPEC+ to reverse the production cuts.
“More Middle Eastern barrels will come to India, particularly from April 2025, as production cuts are reversed indicating more supply, along with lower prices for Arab Light and other grades,” an official with a domestic refiner said.
