India Secures 60 Million Barrels of Russian Crude Amid West Asia Supply Disruptions

India has reportedly purchased approximately 60 million barrels of Russian crude oil for delivery next month, as supply chains face mounting pressure due to disruptions caused by the ongoing conflict in West Asia, according to a report by Bloomberg.

The move is aimed at ensuring adequate crude availability as shipping flows through the Strait of Hormuz remain constrained, a development that has tightened global supply conditions.

Higher Premiums Reflect Tight Market Conditions

According to the report, the cargoes were booked at premiums ranging between $5 and $15 per barrel above Brent crude, indicating strong demand and limited availability of accessible supplies.

While the volume aligns with India’s purchases for the current month, it represents more than double the quantity imported in February, data from Kpler suggests.

The purchases were facilitated by a US waiver allowing delivery of Russian oil cargoes that had already been loaded onto vessels before early March. The waiver was later expanded to include shipments already at sea and extended to other countries affected by supply disruptions.

Refiners Return to Russian Oil After Reduced Buying

Indian refiners, including Mangalore Refinery and Petrochemicals Limited and Hindustan Mittal Energy Limited, have resumed purchases of Russian crude after largely scaling back imports since December amid US pressure.

In recent months, India had shifted towards sourcing oil from Saudi Arabia and Iraq. However, the outbreak of hostilities in the region left several cargoes stranded in the Persian Gulf, tightening supply and prompting refiners to revisit Russian sourcing.

Officials in New Delhi reportedly expect the US waiver to remain in effect as long as disruptions in Hormuz persist.

Russia Benefits from Renewed Demand

India had previously emerged as a major buyer of discounted Russian crude following the Ukraine conflict. The renewed demand, coupled with rising oil prices, is now boosting Russia’s export revenues, which have reportedly reached their highest levels since early 2022.

Diversification Efforts Underway

In parallel, Indian refiners are actively diversifying their sourcing strategy to mitigate geopolitical risks. Imports of Venezuelan crude for April delivery are projected to reach around 8 million barrels—the highest level since October 2020—reflecting efforts to reduce dependence on any single supply region.

Tanker Movements Continue Despite Volatility

Despite global market volatility, energy shipments to India have continued. According to ANI, the tanker MT Aqua Titan, chartered by Mangalore Refinery and Petrochemicals Limited, arrived in Indian waters on March 22 and is currently anchored off the Mangaluru coast in the Arabian Sea.

Additionally, a vessel carrying liquefied petroleum gas (LPG) from Texas has reached New Mangalore Port, underscoring the steady inflow of energy supplies.

Authorities have confirmed that there is no congestion at Indian ports, and all Indian vessels and sailors operating in the Persian Gulf region remain safe. Officials, including Special Secretary Rajesh Kumar Sinha, stated that the situation is being closely monitored.

Policy Measures to Support Imports

To facilitate smooth operations during the supply crunch, New Mangalore Port has waived cargo-related charges for crude oil and LPG shipments between March 14 and March 31.

Meanwhile, the Indian-flagged crude tanker Jag Laadki successfully docked at Adani Ports Mundra, while LPG carriers MT Shivalik and MT Nanda Devi, carrying over 92,000 metric tonnes of LPG, safely transited through the Strait of Hormuz earlier this month.