India boosts record Russian crude imports amid Middle East shipment delays

Gulf crude is flowing again despite eye-watering tanker costs, while Russia’s oil grip on India is slipping

September marked a significant high in India's crude oil imports, mainly spurred by boosted supplies from Gulf nations. The reintroduction of Iraqi and Kuwaiti crude has notably changed the dynamics of India's import sources, ensuring better supply availability. This surge assists Indian refiners in reducing their dependency on Russian oil amidst global pressure.

<p>India's imports of Russian crude oil fell to approximately 1. 75 million barrels per day in September, marking the lowest lev</p>

With rising demand from China, Indian refiners are anticipating a decline in Russian oil supplies for October and November. Chinese buyers have started paying higher prices for shipments, making it difficult for Indian refiners to compete. Consequently, they are considering costlier oil alternatives such as UAE Murban and Iraqi Basrah crude. Additionally, logistical complications have shifted crude flows toward China, potentially decreasing India's dependency on Russian oil alternatives.

Higher supplies from Iraq, Saudi Arabia and other regions helped offset lower Russian volumes as Indian refiners responded to changing market conditions.

Russian crude oil supplies enabled India to handle oil-supply delays after the conflict in West Asia disrupted energy flows through the Strait of Hormuz, proving Moscow as a reliable energy partner, Russian Deputy Foreign Minister Andrey Rudenko has said.Moscow could meet demand from its partners even in difficult geopolitical conditions, Rudenko recently noted. Existing arrangements between India and Russia helped “significantly mitigate” the consequences of disruptions to global energy trade, Rudenko told Russian news outlet NEWS.ru this week.Rudenko also referred to the Kudankulam Nuclear Power Plant built in collaboration with Russia and said another site will soon be allocated for a Russian-designed nuclear power plant.The oil refiners here increased imports of Russian crude after the US-Israeli-Iran war disrupted traffic through the Strait of Hormuz.In March 2026 following the outbreak of conflict India’s Russian crude imports nearly doubled from the previous month to 2.25 million barrels per day (bpd) and accounted for half of its oil purchases. Gulf shipments to India reportedly plunged following the war.Rudenko’s statement comes amid moves by India to raise with the USA concerns about Russia and Iran Sanctions Act threatening 100 per cent tariff for purchasing Russian oil, and after Ukrainian leader Vladimir Zelensky’s call for choking off Russia’s oil trade under a new US sanctions law.Russian oil shipments to India stood at about 2.1 million bpd in August, and are at around 1.9 million bpd in September, according to preliminary data from commodity analytics firm Kpler.The Indian government has maintained that securing affordable and dependable energy for its 1.4 billion people requires multiple suppliers, and warned against restrictions that could distort or constrict global energy markets.

India bought more than half of its imports from Russia in some recent months, in an effort to counter high prices and continued disruption in flows from West Asia

Indian oil refiners are considering reducing crude purchases from Russia for November deliveries after the US signed a sanctions law that could impose additional tariffs on countries buying Russian energy, Bloomberg reported.India, the world’s third-largest crude importer, has increased its dependence on Russian oil in recent years to manage costs amid global supply disruptions. However, people familiar with the discussions said major refiners have started exploring alternative sources due to uncertainty over possible US measures.'Firmly Committed To Energy Security': India Vows To Protect Trade Interests After US House Passes Russia Sanctions Bill Refiners explore alternatives amid sanctions concernsThe new US legislation gives President Donald Trump the authority to impose tariffs on countries purchasing Russian crude. India, which has been among the largest buyers of Russian seaborne oil, could be affected if Washington decides to enforce the measures.Russian crude imports have already declined and are expected to average around 1.9 million barrels per day in September, according to Kpler data. This would represent more than 35% of India’s total crude imports and the lowest level since April.However, replacing Russian supplies may prove challenging due to the scale of purchases and higher costs of alternative grades. Russian Urals delivered to India was priced at around $133 a barrel last week, while Middle Eastern grades such as Oman and Murban were more expensive. Supply challenges add to uncertaintyGlobal crude markets are facing additional pressure as Persian Gulf producers work to restore shipments through the Strait of Hormuz. At the same time, India’s oil demand is expected to rise as a new refinery in Rajasthan and expansions at existing facilities increase crude requirements.Discussions for November Russian crude shipments are expected to begin soon, making the next buying cycle important for refiners and policymakers.India is also monitoring whether Washington applies the proposed measures broadly to major Russian energy buyers, including China. The legislation allows tariffs of up to 100% on goods from major buyers, but implementation depends on US government decisions.India has maintained that its Russian oil purchases are driven by the need to secure affordable energy supplies.

India’s crude oil import bill increased sharply by 48% to $74.8 billion during the April-August period as global crude prices climbed, even though the country’s import volumes remained almost unchanged, according to a report by Moneycontrol citing data from the Petroleum Planning and Analysis Cell (PPAC).India imported 100.7 million tonnes of crude oil during the period, compared with 101.1 million tonnes in the same period last year. However, in August alone, the import bill rose 18% to $11.7 billion despite a 3% decline in volumes to 19 million tonnes.Crude Oil Surge Puts India’s Import Bill Under Pressure, West Asia Supply Risks Fuel Fresh Concerns West Asia tensions push up crude pricesBrent crude prices remained above the $100-a-barrel mark for more than 18 days amid rising tensions in West Asia. On September 21, Brent was trading around $102 a barrel after a decline of 2% from the previous close.The escalation of US-Iran tensions, concerns over the Strait of Hormuz and attacks by Yemen’s Houthis on Saudi Arabia have supported crude prices. India’s average crude basket price rose to $113.9 a barrel in September from $69.61 a year earlier. Higher oil costs remain a key economic riskIndia, the world’s third-largest crude importer, meets more than 85% of its oil requirements through overseas purchases. Analysts said the key concern is not crude availability but the impact of higher landed prices on the import bill, current account deficit and economic growth.Every $1 increase in crude prices raises India’s annual import bill by up to $2 billion. Analysts expect crude prices to remain elevated if West Asia tensions continue, keeping pressure on India’s energy costs.

India's Russian crude imports fell in August, but rising unidentified shipments suggest the decline may overstate how much Russian oil has actually left the country's crude mix.

India’s crude oil import basket price surges to $131.19 a barrel as fears of supply shocks rise

Where does that leave India, a country that imports around 90% of its crude oil? If crude oil prices continue to rise due to global supply constraints and Russian crude discounts ebb, will India’s crude oil bill manage another hit within months?

Indias fuel exports to Russia surge to even as crude imports fall

New Delhi: India could face a bigger oil import bill and fresh inflation pressure as international crude prices climb sharply amid escalating tensions in West Asia and concerns over energy supplies through the Strait of Hormuz.Brent crude jumped more than 2% to around $99 a barrel on Tuesday, while US West Texas Intermediate (WTI) gained nearly 3% to about $94.India’s Crude Import Bill Jumps 56%India is particularly vulnerable to rising crude prices as it imports more than 88% of its crude oil requirements.According to Petroleum Planning and Analysis Cell (PPAC) data, India's crude oil import bill surged over 56% to $63.4 billion during April-July, compared with $40.5 billion a year earlier, despite import volumes remaining broadly unchanged.India’s Crude Oil Import Bill Jumps 57% To $63.4 Billion In April-July FY27 Despite Flat Volumes The Indian crude basket crossed $100 a barrel, averaging $100.75 in September, against $90.19 in August and $82.04 in July.A prolonged rise in crude prices could increase India's dollar demand, pressure the rupee and trade balance, and push up inflation through higher transport and energy costs.Oil Companies Face Margin PressureHigher crude prices could also squeeze marketing margins at Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.Retail petrol and diesel prices have remained unchanged for more than three months after being raised by a cumulative Rs 7.35 and Rs 7.53 per litre, respectively, in May.India’s Russian Crude Imports Fall 32% In August As Rising Oil Prices Pressure Refiners ICRA's Prashant Vasisht said rising crude prices could turn auto-fuel marketing margins negative and increase domestic LPG under-recoveries from around Rs 200 per cylinder.Strait of Hormuz Disruption Raises RiskThe Strait of Hormuz, which normally carries about one-fifth of global oil and LNG supplies, has seen traffic slow sharply. West Asian oil shipments have reportedly fallen to around 11 million barrels per day from roughly 18 million.For India, a prolonged crude oil spike could raise costs for refiners, airlines, petrochemical companies and other energy-intensive industries while increasing pressure on inflation, the current account and the rupee.

New Delhi, Sep 6: India has emerged as a crucial source of diesel for Europe, supplying about 60 per cent of the fuel transiting the Bab-el-Mandeb to the region in August, as Russian exports remain severely constrained and US shipments begin to weaken, according to data from Vortexa - real-time data and advanced analytics for energy and freight.India boosts European diesel supplyAbout 2,00,000 barrels per day of diesel (gasoil) transited the Bab-el-Mandeb in August on vessels bound for Europe, close to year-earlier levels after flows through the key shipping route nearly stalled in March and April.India supplied roughly 60 per cent of that volume, making Indian refineries an increasingly important source of Europe's eastern diesel supply, Vortexa said in a report.India is the world's fourth-largest refiner, with an installed capacity of 258.1 million tonnes per annum, which exceeds domestic fuel demand by a margin.Exports gain importanceIn 2025-26 (April 2025 to March 2026 fiscal year), India exported 61.5 million tonnes of petroleum products, making it one of the largest exporters of refined products globally.These fuels are now finding a market in Europe and Russia.The concern is whether that flow can be maintained. Crude and condensate shipments into India fell for a second consecutive month to about 3.8 million barrels per day in August, compared to 4.8 million barrels per day a year earlier, Vortexa data showed.Russian supplies remain limitedRussian diesel exports, once a major source of European supply, have remained largely absent.Russia's seaborne diesel and gasoil exports averaged only about 1,50,000 barrels per day in the first 25 days of August, down about 6,10,000 barrels per day from a year earlier and 81 per cent below the five-year seasonal average, according to Vortexa.Even a lifting or partial relaxation of Russia's diesel export ban from September 1 may not produce a rapid recovery.Ukrainian drone strikes have continued to disrupt Russian refining and export infrastructure, with 32 attacks on refineries recorded across July and August. An attack on the 2,60,000-barrel-per-day Perm refinery left only about 28 per cent of its crude distillation capacity operational, according to data cited by Vortexa.Trade routes face disruptionThe impact extends to export terminals.The Black Sea accounted for about 44 per cent, or 380,000 barrels per day, of Russia's diesel and gasoil exports last year, but port and refinery disruptions have reduced available volumes.No diesel cargoes have been exported from Tuapse since a May strike, according to Vortexa.The port handled about 90,000 barrels per day, or roughly 10 per cent of Russia's total diesel exports, in 2025.Russia is also increasingly turning to imports to compensate for domestic refining disruptions.Its seaborne gasoline imports surged to a record roughly 1,25,000 barrels per day in August, equivalent to about 4,70,000 tonnes for the month.Around 55 per cent of those imports arrived on sanctioned tonnage, while India, Turkey and Morocco were among the suppliers.Europe relies on Indian refinersIndian gasoline (petrol) cargoes to Russia in August were carried on sanctioned fleets and involved ship-to-ship transfers in the Mediterranean, highlighting how flows of refined products in and out of the region are being reshaped by sanctions, refinery outages and disruptions to conventional trade routes.For Europe, however, India's role is most important on the diesel side.The country is filling part of the gap left by Russia at a time when the US, Europe's other major source of incremental supply, is also showing signs of retreat.The US supplied about half of Europe's seaborne diesel imports from outside the region in August, or around 5,20,000 barrels per day, compared to about a quarter a year earlier.But shipments to Europe peaked at almost 5,40,000 barrels per day in the first half of August before falling to about 3,50,000 barrels per day in the second half, a decline of roughly 35 per cent.That leaves Europe increasingly dependent on Indian refiners to maintain eastern supply routes just as crude availability in India is tightening.Hormuz offers limited reliefThe Strait of Hormuz is offering limited relief to the clean-products market.Only 37 crossings by MR2-sized, or larger tankers carrying clean products, were recorded during the first 27 days of August, down from 55 in July and 69 in June.Ship-to-ship transfers offshore Oman have continued, but most of the activity involves crude rather than refined products.About 2,30,000 barrels per day of clean products originating west of Hormuz were transferred via ship-to-ship operations offshore Oman in the first three weeks of August, down from about 4,00,000 barrels per day during the same period in June.Winter demand raises concernsThe result is an increasingly concentrated European diesel supply chain.Russian exports remain depressed despite the scheduled end of the current diesel ban, US shipments have started to decline, and the Hormuz route is providing little additional product supply.India is consequently carrying a growing share of the burden, according to Vortexa.Europe is approaching its peak winter diesel-demand period with inventories already low and refineries on both sides of the Atlantic facing autumn maintenance after running at elevated rates.That leaves limited room for supply disruptions.

Mumbai: Brent crude has crossed USD 95 a barrel as renewed fighting in West Asia raises fears of supply disruptions. Prices have climbed about 20 percent from nearly USD 79 in early July, reversing the decline seen during a brief period of calm.Crude traded between USD 88 and USD 97 over the past week after US strikes along Iran’s southern coast on 31 August and retaliatory attacks by Iran. The escalation has increased uncertainty over exports from the region.Why India is vulnerable?India imports nearly 90 percent of its crude oil requirement, making the economy highly sensitive to global prices. Its oil import bill was around USD 123 billion in FY26. Every USD 1 increase in crude prices sustained for a year could add about Rs 18,000 crore to the annual bill. Markets Open Lower As Geopolitical Tensions Push Crude Oil Prices HigherIn the first four months of FY27, India imported crude worth USD 63.4 billion, up about 56.5 percent from a year earlier. Higher costs could fuel inflation, weaken growth and widen the current account deficit if passed on to consumers.Supply routes under pressureWest Asia traditionally supplied 60-65 percent of India’s crude imports. The closure of the Strait of Hormuz, a route that earlier carried about 20 percent of global oil trade, has sharply reduced these flows.Indian refiners have diversified towards Russia, the US and Venezuela. Supplies remain available, but longer shipping routes and the heavier nature of some crude grades increase processing and transport costs.Demand continues to growIndia’s petrol consumption rose 7.88 percent year-on-year to 3.82 million tonnes in August, while diesel demand increased 6.46 percent to 7 million tonnes. Rising consumption will further lift import requirements. Stock Market Opens Cautiously, Sensex And Nifty Slip As Crude Oil, US-Iran Tensions WeighEnergy security pushIndia now sources oil from about 41 countries and is seeking more suppliers. The Rs 84,000-crore Samudra Manthan offshore exploration scheme also aims to increase domestic production. India’s eastern and western offshore basins are estimated to hold more than 5,600 million metric tonnes of oil-equivalent hydrocarbon potential.

Oil shipments to India have been disrupted by a resurgence of fighting in the Middle East, with at least two refiners forced to arrange more costly, alternative cargoes after planned deliveries didn’t arrive on time.State-run Bharat Petroleum Corp. had four Persian Gulf cargoes that weren’t delivered on schedule in August, according to people familiar with the matter, who asked not be named discussing commercial matters. Separately, Indian Oil Corp. has also seen its delivery schedules getting changed, they said.The sudden disruptions have forced local refiners to seek other crude supplies at short notice, which contributed to a recent flurry of purchase tenders and cargo solicitations, according to separate people familiar with the trades, who asked not be named due to the sensitivity of the matter.Also Read: ONGC Videsh eyes Venezuela oil assets after US green lightIndia is the world’s third-biggest oil consumer, and the cargo snarls highlight how the war in the Middle East between Iran and the US continues to vex processors and boost costs. At the same time, refiners in the South Asian nation are facing an additional challenge as oil flows from Russia — a mainstay supplier — have also come under pressure because of Ukrainian attacks.While India is a relatively short shipping distance from the Middle East, it typically relies on cargoes sent through the Strait of Hormuz, the chokepoint that links the Persian Gulf to global markets. Washington and Tehran remain in dispute over the waterway, with elevated risks to shipping.For BPCL, the quartet of missed cargoes comprised two from the United Arab Emirates, one from Saudi Arabia and a fourth from Kuwait, with the Kuwaiti shipment supplied by a trader, the first set of people said. Still, after the recent scramble, the refiners are now comfortable with orders through to October, with many now largely arranging November deliveries, they said.Also Read: India’s August fuel story- Petrol, diesel up, LPG down sharplyRefiners typically plan purchases several weeks or months in advance in order to try to optimize freight, crude grades and refinery runs. When a scheduled cargo slips into a later so-called delivery window, buyers typically have to pay up for replacement barrels that can reach their plants quickly.Given the Russian-Ukraine war — with Kyiv launching repeated strikes against its foe’s energy infrastructure — Moscow’s barrels have become more expensive. Urals, which ships from the nation’s western ports, is now priced at a premium of about $2 a barrel, compared with a discount a few weeks ago.BPCL and IOC didn’t immediately respond to separate requests for comment.

Russia’s seaborne gasoline imports climbed to a record level of around 125,000 barrels per day (kbd) in August, which would amount to about 470,000 tonnes for the month. Reports suggest that Indian refiners supplied as much as 1 million barrels of gasoline to Russia over the past two months.

Indian refiners supplies as much as 1 million barrels of gasoline in the last two months. The supplies essentially come from Vadinar refinery in Gujarat, operated by Nayara Energy, which is half owned by Russia's Rosneft

Indian refiners are reducing their purchases of Russian crude from recent highs as Ukrainian attacks on Russia’s refineries and Black Sea ports disrupt supplies from the country, India’s largest source of imported oil.With Russian exports under pressure, Indian processors are increasingly looking for alternative crude grades from West Africa, the Americas and Persian Gulf producers, Bloomberg reported. The shift comes even as crude shipments through the Strait of Hormuz remain constrained amid the ongoing US-Iran conflict.India’s Russian Crude Imports Fall 32% In August As Rising Oil Prices Pressure Refiners Russian crude flows face supply pressureRussia became India’s dominant crude supplier following the outbreak of the Ukraine war in 2022, with Russian oil accounting for more than half of India’s imports last month. However, imports are expected to decline to around 2 million barrels per day this month, compared with roughly 2.8 million barrels per day in July, according to Kpler.According to the report, Kpler analysts attributed the decline to weaker Russian export availability, increased competition from China, a normalization in India’s recent buying and refinery maintenance.Russian crude shipments could stabilise above 2 million barrels per day in the coming months.Indian refiners diversify crude purchasesIndian Oil Corp (IOC), the country’s largest refiner, has recently sought crude supplies from producers as far away as the Americas, an unusual move for the company. IOC also floated another tender primarily targeting Persian Gulf grades.Hindustan Petroleum Corp and Mangalore Refinery & Petrochemicals Ltd have likewise made spot purchases of non-Russian crude. Ukrainian attacks have affected Russia’s domestic refining operations and export infrastructure, contributing to fuel shortages while limiting Moscow’s ability to redirect crude into overseas markets. Russian seaborne crude shipments fell to around 3.5 million barrels per day over the past four weeks, from more than 4 million barrels per day in July, tanker data showed.India is also facing stronger competition from China for discounted Russian barrels. October-loading Sokol cargoes from Russia’s eastern ports were booked unusually early, indicating stronger forward demand and tighter availability.Traditionally, India and China have focused on different Russian crude grades, but tighter supplies could increasingly bring the two major Asian buyers into direct competition.

Despite the threat of the Graham Bill and potential secondary tariffs, Russia remains India’s largest crude supplier

India’s crude oil import bill rose nearly 57% year-on-year to $63.4 billion during April-July of FY27, even though the quantity of crude purchased from overseas remained largely stable. The sharp increase highlights the impact of higher international oil prices on India’s energy import costs.According to a report by Financial Express citing data from the Petroleum Planning and Analysis Cell (PPAC), crude imports increased only 0.5% to 81.9 million tonnes (MT) during the first four months of FY27, compared with 81.5 MT in the same period a year earlier. In rupee terms, the import bill stood at around ₹5.94 lakh crore.India’s Russian Crude Imports Fall 32% In August As Rising Oil Prices Pressure Refiners Higher Crude Prices Drive Import CostsThe increase in the oil bill reflects elevated crude prices rather than a major rise in import volumes. India’s crude basket averaged $82.04 per barrel in July, compared with $70.95 a barrel during the same month last year. Brent crude also averaged $83.41 a barrel in July, against $70.99 a year earlier.July alone saw crude imports rise 13.3% to 21.4 MT. The monthly import bill increased to $13.7 billion, from $9.7 billion in July 2025.The pressure had already intensified in the June quarter, when India’s crude import bill increased 61% to $49.8 billion despite lower import volumes. Oil Dependence Keeps Energy Bill ElevatedIndia’s combined net oil and gas import bill expanded to $57.8 billion during April-July, compared with $40.3 billion a year earlier. Gross petroleum imports were valued at $69 billion, up from $48.2 billion.Petroleum product imports, however, declined sharply, with volumes falling 45.1% to 9 MT. LNG imports moved in the opposite direction, rising to 11,867 million standard cubic metres, while their value increased to $5.6 billion.India’s dependence on overseas crude remained particularly high. Crude oil import dependency stood at 88.3% during April-July, while domestic production declined to 9.1 MT from 9.5 MT a year earlier. Overall oil and gas import dependence edged up to 80.4%.

India’s imports of Russian crude oil have dropped sharply in August, raising concerns for domestic refiners as disruptions to Russian production and exports intensify. The decline comes at a time when India’s crude procurement costs are rising, potentially reducing the benefit refiners have received from discounted Russian supplies.According to Kpler data cited in a report by Financial Express , Russian crude deliveries averaged around 1.9 million barrels per day (mbpd) during the first 15 days of August, nearly 32% below the record 2.8 mbpd recorded in July. Imports had steadily increased from 1.6 mbpd in April to 1.9 mbpd in May, 2.7 mbpd in June and 2.8 mbpd in July.Trump, PM Modi Will Resolve '100% Tariff' Issue Over Russian Oil Purchases: US Official Refinery Maintenance Cuts Russian SuppliesAs Russian supplies declined, Indian refiners increased purchases from traditional West Asian suppliers. UAE deliveries reached around 700,000 bpd in the first half of August, while Saudi Arabia supplied approximately 480,000 bpd.The shift comes as India’s crude basket becomes more expensive. The average price stood at $88.62 per barrel in August, compared with $82.04 in July and $83.22 in June. The price was $89.58 per barrel on August 17.Rising international crude prices are adding pressure, with Brent trading around $91.07 per barrel and WTI near $84.99. The reduced availability of Russian crude could force Indian refiners to source more expensive replacement barrels. According to the report, Rystad Energy has also lowered its forecast for Russian crude production, projecting average output of 8.95 mbpd in 2026, followed by a decline to around 8.6 mbpd in 2027.The consultancy expects Russian refinery throughput to average roughly 4 mbpd in the second half of 2026, nearly 30% below the historical seasonal average. It estimates Russia could process around 1.4 mbpd less crude than normal during the period.Rystad said increasing drone attacks are now affecting both Russia’s refining and upstream operations. With spare capacity limited and ageing oil wells accounting for much of it, prolonged disruptions could eventually force production cuts and permanently reduce some output capacity.

Analysts and refiners emphasised that Moscow has transformed into New Delhi’s strongest energy security hedge, particularly since the closure of the Strait of Hormuz (SoH) and growing disruptions in the Bab-el-Mandeb strait

Russian crude oil reached a record share of India's total imports in July, exceeding 50%. According to Reuters data, Russian oil accounted for 50.83% of India's import volume during this period, totaling 2.47 million barrels per day. This figure represents a 62.4% increase compared to July of the previous year. While there was a slight decline of 4.8% from the June peak of 2.6 million barrels per day, the data underscores India's role as a primary destination for Russian energy exports and its continued acquisition of oil despite G7 price cap restrictions. Shift in Supplier Dynamics Russian grades, specifically Urals and Sokol, are displacing traditional suppliers from the Persian Gulf. Imports from Saudi Arabia have fallen to multi-year lows because Russian crude remains cheaper for Indian refineries even after accounting for logistics costs.

Russian crude gains favour as Indian refiners seek heavier grades amid higher shipping costs and geopolitical disruptions.

India’s ⁠July imports of Russian oil jump 62.4% from a year earlier

Russia’s share of India’s crude oil imports hit an all-time high of 48% in June 2026, even as the United States moves closer to imposing tariffs of up to 100% on countries buying Russian oil and gas. India imported 8.7 million metric tonnes of Russian crude in June, while overall crude imports fell sharply. The UAE also recorded a historic 17.5% share, meaning Russia and the UAE together accounted for nearly two-thirds of India’s oil imports.

Indian buyers imported Russian crude worth 5.5 billion euros in July, up 2.1% from June.

In the first quarter of the year, India's crude oil import bill surged by twenty-six percent compared to last year, reaching forty-nine billion dollars, up from thirty-nine billion. Despite an eighteen percent drop in import volumes, rising oil prices, fueled by ongoing conflicts, significantly impacted costs. Russia emerged as India's primary crude supplier, contributing over forty percent, and refiners incurred substantial war-risk premiums to ensure a reliable energy supply.

India's crude oil imports from Russia hit a record 2.8 million barrels daily in July. This surge accounted for over half of the country's total crude purchases. Meanwhile, LPG imports heavily favored the United States, supplying seventy-three percent of July's total. Refiners also increased sourcing from West Asian suppliers as Strait of Hormuz flows normalized. Saudi Arabia, Iraq, and Kuwait saw rising exports to India during this period.

If shipping through the Red Sea remains unaffected, Indian refiners will continue to have an important supply cushion through Saudi Arabia's East-West (Yanbu) pipeline, which has recently been supplying around 300,000-500,000 barrels per day (kbd) of crude.

Uncertainty over crude loadings from Russia’s Black Sea port of Novorossiysk after Ukrainian attacks

NEW DELHI: Traders have stopped offering discounts on Russian crude sold to India as disruptions to Middle Eastern supplies have boosted demand for alternative grades, the head of finance at Indian state refiner Bharat Petroleum Corp said on Thursday. Refiners in India, the world's third-biggest oil importer and consumer, have raised ‌purchases of ⁠Russian ⁠oil as supplies from traditional producers in the Middle East have been disrupted.Also Read: Hormuz, Red Sea spark a 1,000% war-risk premium shock BPCL has secured crude supplies for August and is scouting for cargoes for September delivery, Vetsa Ramakrishna Gupta told analysts after the company's quarterly earnings. He said the company is receiving offers from traders on Russian oil cargoes for September delivery. "But definitely because of recent development in ⁠crude markets, now no ‌one is offering any discount for Russian crude," he added. Discounts for Russian Urals crude recently widened to more ⁠than $10 a barrel below dated Brent in Indian ports. "Although markets witnessed a brief period of stability during June, the latest geopolitical development has reminded us how quickly it can reshape the operating landscape," Gupta said, adding that suppliers may not be in a position to supply some cargoes through Red Sea routes.Also Read: Indian refiners come to the rescue of Russia’s oil exporters The disappearance of discounts follows a jump in global oil prices after ‌Houthi attacks on shipping in the Red Sea and renewed disruptions to flows through the Strait of Hormuz after an escalation in hostilities between the ⁠U.S. and Iran, raising costs for refiners reliant on imported crude. Higher crude costs are likely to squeeze profitability of Indian state refiners, which sell fuels at subsidised rates in their domestic market. BPCL and Hindustan Petroleum Corp both reported quarterly net losses on Wednesday. BPCL, which processes more than 800,000 barrels per day of crude, met 69% of its oil needs through spot purchases in the June quarter, Gupta said.

Indian refiners have increased purchases not just from Russia but also from Latin America. Meanwhile, Middle East imports to India fell sharply.

India Keeps Buying Russian Oil At Near-Record Pace Despite Expired Waiver Authored by Tsvetana Paraskova via OilPrice.com, India's crude oil imports have remained close to record-high levels in July despite the end of the U.S. waiver the previous month. The U.S. quietly let the waiver allowing the purchase of Russian oil loaded on tankers expire on June 17, just as the U.S. and Iran signed the memorandum of understanding to continue negotiations on a deal. Yet, Indian imports of Russian crude has continued to flow in July, many of which may have been cargoes that were arranged during the window covered by the U.S. waiver. So India's imports of crude oil from Russia have averaged 2.45 million barrels per day (bpd) so far this month, according to data by Kpler cited by Indian media. The July imports from Russia are not far off the record high level of 2.64 million bpd in June, when India boosted purchases from Russia, encouraged by the U.S. waiver that has been extended by a month a few times since March. The Iran war and the Hormuz crisis further cemented Russia's position as the single largest crude oil supplier to India So far in July, the United Arab Emirates (UAE) has ranked second, supplying an average of 617,000 bpd, while Saudi Arabia has been India's third largest supplier with 586,000 bpd in early July, per Kpler data. The UAE and Saudi Arabia have workarounds to ship crude from terminals outside the Strait of Hormuz. Saudi Arabia has redirected most of its shipments to the Yanbu export port on the Red Sea, while the UAE has relied on a pipeline to Fujairah and ship-to-ship transfers on tankers offshore Oman and the UAE east of the Strait of Hormuz. Going forward, Russian crude will remain a key source of oil supply for India even if the U.S. doesn't renew the waiver for Russian crude already loaded on tankers, analysts say. Tyler Durden Tue, 07/21/2026 - 20:55

Deliveries of Russian crude oil to India so far this month remain near June’s record 

Industry experts say India's crude procurement pattern during the US-Iran conflict reflects a flexible and well-diversified sourcing strategy. India’s crude oil imports from Russia in July so far have averaged at around 2.45 million barrels per day.

Russian crude oil reached the highest level on record in June 2026

New Delhi: Saudi Arabia is set to regain share in India's crude imports in July after its share nearly halved in May and June, although Russia is expected to remain the country's largest supplier, according to estimates from energy cargo tracker Kpler.Saudi Arabia is expected to supply 464,000 barrels per day (bpd) to India in July, based on arrivals in the first half of the month and tanker-tracking data. Between July 2025 and April 2026, the kingdom supplied an average of 700,000 bpd, accounting for about 14.5% of India's crude imports. After its share slipped to an average 7% in May-June, Saudi Arabia is set to recover to about 10% in July.Imports from Iraq, Kuwait and Qatar, whose crude exports rely entirely on transit through the Strait of Hormuz, remain negligible. Supplies from these countries are unlikely to pick up in the second half of July as shipping through the Strait has again been disrupted following the resumption of the US-Iran conflict.India's overall crude imports are projected to decline to 4.55 million bpd in July from 5.09 million bpd in June. Russian shipments are also expected to ease to 2.26 million bpd from 2.73 million bpd in June, although they remain well above the preceding 12-month average of 1.73 million bpd.The estimates are subject to revision as voyage visibility improves and vessel-tracking data become more complete, said Nikhil Dubey, lead analyst, refining at Kpler. "Russian cargoes often show up at the last minute as some cargoes get booked through traders, available nearby so they may not be captured in the current forecast yet," he said. "Therefore, it is possible that additional Russian volumes may appear in the second half of the month."Venezuelan crude imports are also seen rising to an estimated 315,000 bpd in July from 281,000 bpd in June, making the Latin American country India's fourth-largest supplier after Russia, Saudi Arabia and the UAE (379,000 bpd).US crude imports are expected to decline to 125,000 bpd in July from 157,000 bpd in June. Shipments from the US have remained subdued since the outbreak of the Iran war on February 28, well below last year's average.US crude, which is predominantly light, is currently less attractive to refiners, Dubey said. "With middle distillate economics remaining strong over the past few months, refiners are prioritising crude grades that maximise middle distillate yields."

The sharp increase came as India's overall crude imports rose 5.4 per cent month-on-month, with Russian supplies to key refineries posting steep gains

An analysis by The Hindu shows that India also once again began importing oil from Iran and Venezuela in April and continued to do so in May 2026

Soaring Imports Push India's Crude Stocks To Near 1-Year High India’s strategic and commercial crude oil inventories have jumped to a nearly one-year high as the world’s third-largest crude oil buyer boosted its imports to a record high in June, OilPrice reported. As at the end of June, India’s crude oil stocks held in strategic, commercial, and refinery storage had increased to 104 million barrels, up from 90.5 million barrels at the end of April, according to data from commodity intelligence provider Kpler cited by Indian outlet Economic Times. Before the Iran war began, India held 107 million in crude oil inventories as of the end of February—the highest end-month level for the previous 12 months. The war depleted inventories in March and April, before Indian refiners started raising imports from Russia and turn to Venezuela—both sources of supply that doesn’t need to transit the Strait of Hormuz. By June, stocks were recovering and nearing the level from before the Iran war. India imported a record high level of 5 million barrels per day (bpd) of crude oil in June, more than half of which - 2.6 million bpd - from Russia, thanks to the U.S. waiver (now expired) on sales of Russian oil already loaded on tankers. Yet, India wants to lower its crude import bill, protect public finances, and become more resilient to supply shocks such as the Middle East conflict that crippled supply from the Strait of Hormuz. That’s why it is looking to boost energy security by diversifying import sources and expanding its strategic storage. Currently, India’s underground Strategic Petroleum Reserve storage has a total capacity of 5.33 million metric tons of crude oil, equal to only 39 million barrels of crude oil, or eight days’ worth of India’s oil consumption. India’s storage of just about a week of its roughly 5 million bpd of consumption, is well below the SPRs of many other large oil consumers, which exposes New Delhi’s vulnerability to sudden supply shocks. Separately, in response to media reports that India is flipping Russian oil imports by exporting its products back to Russia, India’s Oil Minister, Hardeep Singh Puri, said that the country's refiners are not directly exporting any refined petroleum products to fuel-starved Russia, although some supplies from traders are likely reaching Russia. Reports emerged earlier this week that Russia had started importing fuel from India by sea in a bid to ease the fuel shortages triggered by Ukrainian drone attacks on Russian refineries. In an exclusive Reuters report, industry sources revealed that an initial shipment of at least 60,000 metric tons (510,000 barrels) of gasoline has been dispatched from India via two tankers destined for Russian ports. Hours after the report surfaced, India’s oil minister insisted that Indian refiners aren’t directly selling fuel to Russia. “Indian companies are not selling fuels to Russia,” Puri said at a media briefing, but acknowledged that it is “possible that Indian-origin refined fuel is sold to Russia via traders.” Gasoline from Indian refiner Nayara Energy, in which Russia’s top oil firm Rosneft holds a 49% stake, has been sold to Russia via traders, sources with direct knowledge of the deals told Reuters on Thursday. So it is likely that India-produced fuels are now reaching Russia via traders, as Moscow scrambles to alleviate a major fuel supply crisis. Ukraine’s intensified drone strikes in recent months have now knocked offline an estimated 30% of Russia’s oil refining capacity. During peak summer demand, Russian refining throughput has sunk to a two-decade low. In a rare public admission at the end of June, Russian President Vladimir Putin acknowledged that Russia faces fuel shortages and a fuel crisis that needs further government intervention to solve. The fuel shortages that emerged in some regions in May have now reached the capital city Moscow, too, after Ukrainian strikes last month hit and sent Moscow’s Kapotnya refinery offline. The refinery is unlikely to resume fuel production before 2027 after suffering extensive structural damage from multiple strikes by Ukraine’s long-range drones, industry sources told Reuters last month. Tyler Durden Mon, 07/06/2026 - 02:45

NEW DELHI: India's Russian oil imports surged to a record high in June, ship tracking data from LSEG and Kpler showed, as refiners snapped up Russian barrels to mitigate the impact of the ‌Strait of ⁠Hormuz ⁠closure on other sources of supply. Indian refiners received about 2.70 million bpd of oil from Russia this month, preliminary data from Kpler and LSEG showed.Also Read: India plans to add strategic fuel reserves after Iran war shock India's Russian oil imports in May were 2.13 million bpd, according ⁠to Kpler, ‌while LSEG pegged May imports at 1.95 million bpd. Russian oil has been ⁠dominating India's crude diet since 2022-23 as refiners turned to barrels sold at a discount after some European customers shunned purchases from Moscow in retaliation for its war on Ukraine. Total crude imports by the world's third-largest oil importer and consumer ‌were nearly flat at 4.9 million barrels per day, the Kpler data showed, with Russia as ⁠the largest supplier. Russian oil accounted for more than half of India's overall imports, up from 36.5% in May, the data showed. India has been gorging on Russian oil to make up for the shortfall of supplies from the Middle East.