In an effort to avoid higher tariffs from the U.S., India started to reduce its Russian oil imports. However, following a temporary waiver from Washington, imports from Moscow surged to offset the drop in Gulf supplies caused by the blockage of this critical shipping lane.
The data indicated that oil imports from the Middle East fell by approximately 27% to 1.55 million barrels per day from April to June, marking the first quarter of this fiscal year. In contrast, imports from the Commonwealth of Independent States, including Russia, increased by 8.3% to 2.26 million bpd.
Last month, Indian imports of Russian oil reached a record high of 2.64 million bpd, representing an impressive 37.4% increase from May and comprising half of India’s total oil imports of 5.24 million bpd.
SHARE OF RUSSIAN OIL IN INDIA’S IMPORT MIX RISES
The Strait of Hormuz, located between Iran and Oman, was previously the primary transit route for roughly one-fifth of global oil supply.
During the quarter, Indian refiners also increased their imports of heavier grades from Brazil, Venezuela, and Angola, as shown by the data.
The proportion of Russian oil in India’s total imports from April to June climbed to nearly 41%, up from around 38% a year earlier, while the Middle East’s share fell to 31% from 41.4%, according to the data.
Indian refineries are expected to rely more heavily on oil from Russia, West Africa, and the Americas if supplies through the Strait remain disrupted and if Yemen’s Iran-aligned Houthis enforce a naval blockade against Saudi Arabia, according to sources within Indian refiners.
India, recognized as the third-largest oil importer and consumer globally, imported 403,000 bpd from Saudi Arabia in June, primarily through the Yanbu port, according to the data.
Tensions have intensified since a fragile truce between Washington and Tehran collapsed in early July, leading to an uptick in military strikes and further disrupting shipping in the waterway.
The sources indicated that one alternative could be to import Saudi oil using a longer and more expensive shipping route around the Cape of Good Hope.
Indian refiners continue to rely on supplies from Moscow, procuring oil from non-sanctioned entities, following Washington’s withdrawal of the temporary waiver on Russian oil sanctions.
