Indian oil refiners have reduced purchases of Russian crude for November 2026 delivery as rising prices and stronger demand from China make Russian supplies less competitive. According to market reports on October 8, refiners are increasingly considering Middle Eastern crude as oil shipments from the Persian Gulf gradually recover.

Russia's Urals crude is reportedly being offered at premiums exceeding $10 per barrel above the Dated Brent benchmark. According to energy market intelligence firm Kpler, Russia's share of India's crude imports declined to approximately 35% in September, compared with 56% in July, as refiners reassessed their purchasing options.

Meanwhile, oil shipments from the Middle East have recovered to approximately 80% of pre-war levels, according to Shell Chief Executive Officer Wael Sawan. More oil tankers are passing through the Strait of Hormuz despite continuing security threats. Shorter sailing distances and lower transportation costs also make Gulf crude increasingly attractive to Indian refiners.

The shift could increase demand for Middle Eastern crude and affect global tanker trading patterns as Asian buyers compete for available supplies. However, security concerns in the Strait of Hormuz, elevated freight rates, and uncertainty surrounding regional conflicts continue to pose challenges to international oil transportation and maritime trade.