Winning Bizness Desk
Mumbai. The ongoing Israel-Iran conflict in the Middle East has severely disrupted global oil supply chains, forcing India to secure alternative sources. In a major move, Indian refiners have decided to purchase around 60 million barrels of crude oil from Russia for April delivery. This comes at a time when traditional supply routes through the Strait of Hormuz remain uncertain and volatile.
Shift to russian oil to manage supply gap
India’s decision is largely driven by supply disruptions from key Middle Eastern producers such as Saudi Arabia and Iraq. With shipments getting delayed or stuck within the Persian Gulf region, Indian companies have turned once again to Russian crude to maintain domestic fuel stability.
- Around 60 million barrels of Russian crude booked for April delivery
- Supply from Saudi Arabia and Iraq affected due to regional tensions
- Strait of Hormuz disruptions create urgency for alternative sourcing
- Indian refiners prioritising uninterrupted fuel availability
This shift signals a temporary but strategic return to Russian oil after months of reduced dependence.
Russian crude purchases double compared to February levels
Data from energy intelligence firm Kpler shows that India’s April purchases from Russia are more than double the volumes recorded in February. However, the figures remain largely similar to March levels, indicating sustained high demand amid ongoing geopolitical tensions.
Indian refiners have been actively scouting for stable and risk-free supply routes in recent weeks. As uncertainties in the Middle East deepen, Russian oil has emerged as the most reliable option despite logistical and pricing challenges.
Russian oil now sold at premium over Brent
In a significant reversal, Russian crude—once available to India at deep discounts—is now being sold at a premium. Reports suggest that Indian buyers are paying an additional 5 to 15 dollars per barrel over Brent crude prices.
- Premium range reported between 5 to 15 dollars per barrel
- Higher demand and limited supply driving price surge
- Discounted Russian oil phase appears to be over for now
- Indian refiners absorbing higher costs to secure supplies
This price shift underlines the intensity of the current supply crunch and India’s urgency to secure energy needs.
US relaxes rules to allow russian cargo intake
A key factor enabling this large-scale purchase is a special exemption granted by the United States. Washington has allowed India to receive Russian oil shipments that were loaded onto vessels before March 5. This deadline was later extended to March 12 to ease supply pressures.
The exemption aims to prevent a severe oil shortage following disruptions in the Strait of Hormuz. Officials in New Delhi expect that the relaxation may continue if the crisis persists.
Refiners return to russian market, venezuela imports rise
Indian refiners such as Mangalore Refinery and Petrochemicals Limited and Hindustan Mittal Energy Limited, which had reduced Russian purchases since December, have now re-entered the market. Their focus remains on building sufficient stock to meet rising domestic demand.
At the same time, India is also increasing imports from Venezuela as part of a broader diversification strategy.
- Venezuela imports may reach 8 million barrels in April
- Highest import level since October 2020
- India expanding sourcing beyond Middle East routes
- Focus on balancing cost, quality and supply security
Russia gains as global demand pushes export revenues higher
The surge in demand from countries like India and China has significantly boosted Russia’s oil revenues. Since the start of the Ukraine war, Russian crude exports are now witnessing one of their strongest phases, with earnings reaching peak levels.
Market analysts believe India currently has limited alternatives. Venezuelan crude does not match Russian quality, while Middle Eastern routes remain risky due to conflict. Until stability returns to the region, reliance on Russian oil is expected to continue.
