India, which imports around 90% of its crude oil requirements, is aggressively stocking up on crude and diversifying procurement as the Strait of Hormuz remains partially closed and oil prices stay elevated above pre-war levels, according to a report by Business Today.
Record Russian crude imports
India's crude oil purchases from Russia climbed sharply in June, while imports from the United Arab Emirates remained close to historic highs, as refiners secured supplies before flows from Gulf producers fully normalise, data from maritime and commodity intelligence firm Kpler showed. India imported an average of 2.66 million barrels per day (bpd) of Russian crude between June 1 and June 19, up significantly from 1.91 million bpd in May. This further strengthened Russia's position as India's largest crude oil source.
Imports from the UAE averaged 636,000 bpd during the same period, only slightly below the record level of 644,000 bpd seen in May. Venezuela became India's fourth-largest crude supplier, shipping 209,000 bpd, trailing Saudi Arabia, which supplied 384,000 bpd. Meanwhile, crude purchases from the United States declined sharply, dropping to 91,000 bpd from 252,000 bpd in May, according to Kpler.
| Country | June 1-19 (bpd) | May (bpd) | Change |
|---|---|---|---|
| Russia | 2,660,000 | 1,910,000 | +39% |
| UAE | 636,000 | 644,000 | -1% |
| Saudi Arabia | 384,000 | N/A | N/A |
| Venezuela | 209,000 | N/A | N/A |
| US | 91,000 | 252,000 | -64% |
Russian barrels continue to be priced competitively, trading at discounts of $1 to $2 per barrel to Dated Brent, according to a Bloomberg report cited by Business Today. Those discounts could become even larger if supply availability increases further.
Diversification beyond the Gulf
Since March, Indian refiners have stepped up crude purchases from the Atlantic Basin and Venezuela to compensate for reduced availability from Gulf producers, the report said. Venezuelan imports are projected at 300,000–400,000 bpd in June, offering refiners that process heavier crude grades a valuable alternative. Meanwhile, LNG importers secured additional cargoes from countries such as Oman, Nigeria, and the US.
India's state-owned refiners have already lined up sufficient crude supplies for around the next two months and are not under immediate pressure to restart purchases from the Middle East, even if commercial shipping through the Strait of Hormuz resumes. Russian crude is expected to retain its key position in India's import mix because of its economic advantages and reliability.
Building strategic reserves
The government is also looking to ramp up strategic oil reserves. Oil and Natural Gas Corp (ONGC) has been tasked with developing and stocking India's next strategic petroleum reserve, a government-backed initiative that could involve an investment of roughly $1.6 billion (Rs 15,000 crore). The decision follows the US-Iran war, which highlighted the country's vulnerability to supply disruptions.
Gulf exporters are likely to slowly recover their share of the Indian market once Hormuz conditions stabilise, but India's import network is expected to remain more diversified than before the disruption.
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