India’s Russian Oil Imports Surge in June Due to Hormuz Disruptions
India’s imports of Russian crude oil surged to a record high in June, reaching approximately 2.70 million barrels per day (bpd). This increase comes as Indian refiners capitalize on discounted prices to mitigate supply risks associated with disruptions in the Strait of Hormuz. Preliminary ship-tracking data from LSEG and Kpler, reported by Reuters, indicates a significant rise from May’s imports, which were estimated at 2.13 million bpd by Kpler and 1.95 million bpd by LSEG.
Russia accounts for more than half of India’s oil imports
In June, Russian crude constituted over 50 percent of India’s total oil imports, a notable increase from 36.5 percent in May. This shift solidifies Russia’s status as India’s largest crude supplier. Since 2022, Indian refiners have increasingly turned to Russian oil following Western sanctions on Moscow due to its invasion of Ukraine, which led many European buyers to withdraw from the market. The latest increase in imports also reflects refiners’ strategies to offset reduced availability and uncertainty surrounding Middle Eastern supplies during the ongoing crisis in the Strait of Hormuz.
Diversified sourcing helped refiners manage supply disruptions
An HSBC Global Research report indicates that India’s crude imports have largely rebounded to pre-conflict levels, as refiners successfully diversified their sourcing beyond the Middle East. The report highlights that refiners have replaced Gulf supplies with crude from Russia, the United States, Oman, West Africa, and South America. Following a dip in March, Indian crude imports have returned to pre-conflict levels, aided by the attractiveness of Russian crude, which continues to trade at a discount to Brent crude.
Although Gulf exports are recovering with the reopening of the Strait of Hormuz, Asian refiners, including those in India, are not expected to significantly increase purchases in the immediate term. They have already secured cargoes for July and August and are entering planned maintenance periods. According to a report from the Centre for Research on Energy and Clean Air (CREA), India was the world’s second-largest buyer of Russian fossil fuels in May, with Russian crude making up about 83 percent of its fossil fuel imports from the country.
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