India's crude oil inventories have rebounded sharply to near their highest levels in a year, according to a Business Today report citing data from Kpler, a global real-time data and analytics provider. At the end of June, crude oil inventory stood at 104 million barrels, up significantly from 90.5 million barrels at the end of April, when stocks had been drawn down during the US-Iran conflict that disrupted import flows through the Strait of Hormuz.
Inventory Recovery and Supply Disruption
The stock build follows a period of depletion after the US-Iran war began in late February. Just before the conflict, India's crude stockpiles had reached 107 million barrels in February—the highest month-end level in the preceding 12 months. As the war disrupted crude import flows, refiners relied on existing inventories, causing stocks to fall to 95.5 million barrels in March and further to 90.5 million barrels in April, according to Kpler estimates.
| Month | Crude Inventory (million barrels) | Crude Imports (mbd) |
|---|---|---|
| Feb 2025 | 107 | 5.20 |
| Mar 2025 | 95.5 | 4.47 |
| Apr 2025 | 90.5 | 4.54 |
| May 2025 | — | 4.96 |
| Jun 2025 | 104 | 4.93 |
The estimates cover strategic petroleum reserves, commercial storage, and refinery inventories, but exclude crude stored in pipelines or aboard tankers headed to India. With the country consuming around 5 million barrels per day, the current inventory is enough to meet approximately 21 days of demand, according to an ET report cited by Business Today.
Record Russian Imports
The US-Iran conflict drove India's imports of Russian crude oil to a record high. Imports from Russia crossed 2.5 million barrels per day in June, accounting for more than half of India's total crude purchases, as refiners built inventories to strengthen supply security. Russia remains India's largest crude supplier and has solidified its dominant position since the conflict began, with shipments exceeding 240 million barrels during the period, according to the report.
An industry executive noted that refiners maintained high operating rates to ensure uninterrupted fuel availability and prevent consumer inconvenience. Oil Minister Hardeep Singh Puri stated on Thursday, "By and large, there was no disruption, no shortage and no queues at fuel stations." However, there were isolated reports of fuel shortages and rationing in some states, which the government attributed to panic buying and shifts from private to state-owned outlets.
Easing of Strait of Hormuz Concerns
With the United States and Iran having reached an interim agreement and shipping through the Strait of Hormuz partially resuming, concerns over crude supplies have eased considerably. "All our vessels are through," Puri said, referring to ships that had faced delays in the Persian Gulf. "We are now in a situation where it's not problematic." The Strait of Hormuz carries nearly 40% of India's crude oil imports, and refiners had quickly sourced alternative supplies from global markets, including Russian crude made available under a US sanctions waiver.
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