India’s oil import strategy is undergoing a sharp U-turn amid escalating West Asia tensions.
After US sanctions under President Trump pressured New Delhi to cut Russian crude purchases, the ongoing Iran-Israel conflict has disrupted Gulf supplies, making Russia an attractive fallback option once again.
For the last five days, the war in the Gulf has imposed a stringent threat to the global oil supply. India relies heavily on Gulf oil imports, with around 40 to 50% of its crude oil, roughly 2.5-2.7 million barrels per day, transiting the Strait of Hormuz from suppliers like Iraq, Saudi Arabia, UAE, and Kuwait.
This chokepoint also carries nearly all of India’s LPG imports, about 80-85% of its needs, making disruptions from the Iran-Israel war particularly risky.
Recent reports, as per government sources, India holds about 50 days of total oil reserves, split evenly: 25 days of crude oil and 25 days of refined petroleum products like petrol and diesel.
This buffer provides six to eight weeks of coverage for domestic demand, bolstered by strategic petroleum reserves holding about a week’s worth of crude.
With no signs of de-escalation, New Delhi eyes alternatives in order to fulfil its energy needs. Will India turn towards Russia?
India’s all-weather friend to the rescue?
According to a Bloomberg report, two Russian oil cargoes originally headed for East Asia have redirected to India, per ship-tracking data, signaling New Delhi’s renewed interest amid the worsening West Asia conflict.
Tankers carrying about 1.4 million barrels of Urals crude combined are set to unload at Indian ports this week, after earlier tracking toward the east, according to Kpler and Vortexa.
Previously favored by Indian refiners, Urals flows from the Baltic and Black Seas had dropped sharply this year under US pressure to halt purchases.
The rerouting signals Indian refiners’ growing openness to Russian oil purchases as the Iran-involved war disrupts Middle East supplies. The conflict has also choked shipping through the Strait of Hormuz, a vital artery for a major portion of global oil flows.
The Bloomberg report also stated that the Suezmax Odune, loaded with 730,000 barrels, reached Paradip on India’s east coast on Wednesday, per data and port agent reports, though it’s unclear if it has discharged yet.
The Aframax Matari, carrying over 700,000 barrels, is due at Vadinar in western India on Thursday.
Indian refiners, cautious about straining US trade talks, had recently scaled back Russian oil buys, pushing Moscow to seek Chinese buyers.
Now, with the West Asia war closing the Strait of Hormuz and risking crude shortages, Indian refineries are pivoting back to Russian barrels.
More rerouting looms as The Suezmax Indri, with 730,000 barrels of Urals in the Arabian Sea and initially signaling Singapore, veered sharply north toward India this week, per ship-tracking data, the report stated.
All three tankers, Odune, Matari, and Indri, faced UK and EU sanctions last year.
Moscow, facing its own Western sanctions, is eager to redirect cargoes to the reliable buyer India. Sources indicate Russia has stockpiles ready, offering Urals crude at steep discounts, which aligns with New Delhi’s energy security.
While boosting Russian imports helps stabilise domestic fuel prices and refinery operations, it risks renewed US friction despite ongoing trade talks.
Bureau Report
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