Winning Bizness Desk

Mumbai.India plans to purchase nearly 30 million barrels of crude oil from Russia after supplies through the Strait of Hormuz were disrupted amid the ongoing Iran–Israel conflict. The move comes as Indian refiners rush to secure alternative sources of crude to maintain domestic energy supplies after tensions in West Asia triggered concerns over supply disruptions along one of the world’s busiest oil shipping routes.

According to a report, Indian refiners including Indian Oil Corporation and Reliance Industries have already booked large quantities of Russian crude. The decision comes soon after reports that the United States had offered India a 30-day window, until April 3, to purchase Russian shipments that were stranded at sea due to sanctions-related complications. However, Indian officials have clarified that the country does not depend on permission from any nation when it comes to buying oil required for its energy needs.

Russian oil cargoes secured in Asian waters

Indian refiners have reportedly secured Russian oil cargoes that were already positioned in Asian waters and awaiting buyers. These shipments had remained in limbo after the escalation of attacks involving Iran.

Key details emerging from trader estimates include:

• Indian Oil Corporation has booked nearly 10 million barrels of crude oil
• Reliance Industries has also purchased at least 10 million barrels
• The remaining quantity has been picked up by other Indian refining companies
• Several Russian cargo ships carrying crude were already waiting in Asian maritime zones

Traders say these purchases helped Indian refiners quickly lock in supplies without waiting for fresh shipments from Russia.

Tankers divert routes toward Indian ports

Shipping data indicates that multiple Russian oil tankers have already altered their routes toward India. Vessels such as Mylo and Sara were initially headed toward Singapore but changed their destinations to Indian ports soon after the United States announced the temporary purchase relaxation.

Russian suppliers are offering several crude grades including Urals, ESPO and Varandey. These grades are widely processed by Indian refineries and are considered suitable substitutes for Middle Eastern crude. Analysts say the diversion of ships already at sea has allowed Indian refiners to respond quickly to the sudden disruption triggered by the West Asian conflict.

India shifts sourcing strategy amid crisis

India had reduced its dependence on Russian oil in recent months and increased purchases from Saudi Arabia and Iraq. Import data shows that shipments from Russia had dropped significantly in February.

Key changes in India’s crude import pattern include:

• Russian oil imports fell to about 1.06 million barrels per day in February
• Earlier in mid-2024, imports had crossed 2 million barrels per day
• Saudi Arabia and Iraq had replaced Russia as top suppliers in recent months
• The Middle East crisis has now pushed India to diversify again

Energy experts say the renewed focus on Russian crude reflects India’s strategy to ensure stable supplies during geopolitical disruptions.

Government reduces reliance on Hormuz route

Iran has temporarily blocked the Strait of Hormuz, a critical passage that handles about 20 percent of global oil shipments. India relies heavily on this route for its energy imports.

Key energy supply indicators are:

• About 50 percent of India’s crude oil imports usually pass through Hormuz
• Nearly 54 percent of liquefied natural gas shipments also use the route
• India has increased imports through alternative shipping routes by 10 percent
• Oil coming through non-Hormuz routes has risen from 60 percent to 70 percent

India imports nearly 85 to 90 percent of its crude oil from more than 40 countries. Officials say the shift toward alternative routes will reduce the impact of the conflict in the Gulf region on India’s supply chain.

Iran signals cargo movement may resume

Government sources say cargo movement near the Strait of Hormuz may resume soon as diplomatic signals emerge from the region. Iran has reportedly conveyed that it will not target neighbouring countries unless its own territory is attacked from their soil.

Officials say India is also receiving fresh offers for oil and LNG supplies from several global producers, which could further stabilise energy availability.

At the same time, the government has expressed confidence over the country’s energy reserves.

• Officials say India’s energy stock position has improved in recent weeks
• Internal review meetings indicate higher oil reserves compared with earlier levels
• Authorities say rising stockpiles have strengthened India’s energy security

Despite the volatile situation in West Asia, government officials believe that stronger reserves and diversified import routes have improved the country’s ability to manage potential supply shocks.