Crude Oil Supply

India's net oil import bill could rise by $56-64 billion annually assuming global crude averages $110-115 per barrel in FY27

A petroleum ministry official said refineries are currently operating at full capacity to meet energy demand, while measures are being taken to stabilise gas and LPG supply

US Ambassador Sergio Gor said India's ongoing Russian oil purchases are helping stabilise global oil markets amid volatility triggered by the escalating West Asia conflict

Israel and Iran exchanged fire early Wednesday as Tehran kept up its pressure on the region's oil industry, hitting a ship in the Strait of Hormuz and targeting infrastructure as concerns grew of a global energy crisis. Iran has effectively stopped shipping traffic through the narrow strait off its coast, through which about a fifth of the world's oil is shipped from the Persian Gulf toward the Indian Ocean. It has also been targeting oil fields and refineries in Gulf Arab nations as part of a strategy that appeared to be aimed at generating enough global economic pain to pressure the United States and Israel to end their strikes. Early Wednesday, Kuwait said its defences had downed eight Iranian drones over the oil-rich nation and Saudi Arabia said it had intercepted five drones heading toward the kingdom's vast Shaybah oil field. A projectile hit a container ship off the coast of the United Arab Emirates in the Strait of Hormuz. The United Nations Security Council was to vote la

IEA members are considering a record release of oil from strategic reserves to stabilise global markets as the West Asia conflict disrupts supply and triggers sharp volatility in crude prices

Strategic reserves offer limited cover as shipping disruptions slow the arrival of replacement barrels

Surging Brent crude and tensions near the Strait of Hormuz threaten to keep Indian markets volatile, with investors watching inflation data and foreign fund flows

As the Israel-Iran conflict escalates, India's deep trade, energy and remittance links with West Asia highlight the economic stakes

A supply disruption even at the mid-range of volumes at risk-7 to 8 million b/d of crude and products-would be higher than the volume that was initially at risk when Russia invaded Ukraine

Reserve Bank of India stepped up surveillance of the currency market, and traders said Wednesday the central bank intervened to curb volatility after the rupee plunged to a record low

Indian refiners are diversifying crude sourcing to bypass the Strait of Hormuz and tapping inventories as the West Asia crisis disrupts key routes that handle over half of India's oil and gas imports

While GL 46A allows financing activities related to transactions, alongside are sanctions on dealings with Venezuelan state oil company PdVSA

On the flip side, a deal between the US and Iran coupled with the excess global supply/capacity could see limit the upside after a volatile phase, analysts said.

India's crude import strategy is entering a phase of calibrated rebalancing rather than abrupt realignment, with Middle Eastern suppliers led by Saudi Arabia regaining market share even as Russian volumes remain significant but increasingly shaped by geopolitics and compliance constraints, according to shipping data and analysts. During February 1-18, India's total crude imports averaged 4.85 million barrels per day (bpd), down 8 per cent from January's 5.25 million bpd, as flows from Russia cooled following US sanctions on key Russian exporters and the European Union's 18th sanctions package coming into effect last month. Ship tracking data showed Russian shipments to India declining from 1.28 million bpd in December 2025 to 1.22 million bpd in January and further to around 1.09 million bpd in early February, down about 10 per cent month-on-month. "Russian crude imports into India are estimated at around 1.0-1.2 million bpd in February, easing toward roughly 800,000 bpd to 1 millio

Mainland Chinese, Hong Kong, ​Singapore, Taiwan and South Korea markets were closed on Tuesday for Lunar New Year ​holidays. US markets were shut on Monday for Presidents' Day

Venezuela's heavy, acidic grades are a poor replacement for higher-quality Russian variants, which are now declining in India's crude oil basket due to US pressure

Recent Indian and US mid-sea operations have exposed a hidden system that allows sanctioned oil to bypass global restrictions through shadow tankers, false flags and offshore transfers

India said Venezuela has been a long-standing energy partner and New Delhi remains open to exploring crude supply options based on commercial merit, even as energy security stays the top priority

Oil prices climbed after the US shot down an Iranian drone and armed boats approached a US-flagged vessel ‍in a key waterway, while precious metals found a firmer footing ​after a recent rout

India became a major buyer of Russian oil after Russia's invasion of Ukraine in 2022 triggered Western sanctions that drove down its price