India Crude Oil

Indian refiners have begun negotiating for additional crude cargoes from the US, Russia and West Africa to ensure supplies remain adequate in the event of the Middle East conflict drags on for a longer period, industry officials and analysts said. Refineries, which convert crude oil into fuels like petrol and diesel, have deferred planned maintenance shutdowns and are maintaining normal processing rates to create buffers that could meet the country's requirement in the near term, they said. India imports about 88 per cent of its crude oil requirement, with roughly half of those supplies in February passing through the Strait of Hormuz, the narrow sea lane between Iran and Oman that serves as a key energy transit route for global markets. The recent military strikes by the United States and Israel on Iran, and Tehran's retaliatory attacks on US bases in neighbouring countries as well as Israel, have sharply escalated tensions in the region, leading to a near halt in tanker movements

Now at a premium, Russian crude imports surge after start of war in West Asia

Asian buyers are rushing to secure fuel supplies to offset production losses from expected refinery run cuts as the near-halt in traffic in the Strait of Hormuz constrains oil supply to the region

There's around 15 million barrels of Russian crude on tankers in the Arabian Sea and the Bay of Bengal, while vessels carrying another 7 million are idling near Singapore

The Congress on Friday took a swipe at the Modi government after the US announced a temporary waiver to allow Indian refiners to purchase Russian oil, and asked till when will this "American blackmail" continue. In a post in rhyming in Hindi on X, Congress general secretary in-charge communications Jairam Ramesh said, "Trump ka naya khel, Dilli dost ko kaha, Putin se le sakte ho tel, kab tak chalega ye Ameriki blackmail (Trump's new game; told his friend in Delhi you can get oil from Putin; how long will this American blackmail continue?) Amid the escalating conflict with Iran, the US said it is issuing a temporary 30-day waiver on Russian oil purchases. "President Trump's energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil," Treasury Secretary Scott Bessent said on ...

India holds about 100 million barrels of commercial crude oil stocks - in storage tanks, underground strategic reserves and on ships voyaging towards the country - which could cover roughly 40-45 days of its requirement if flows through the Strait of Hormuz are disrupted, according to Kpler. India imports about 88 per cent of the crude oil it needs - the raw material for fuels such as petrol and diesel - with more than 50 per cent supplied by Middle Eastern countries and transiting the narrow Strait of Hormuz, flows from which have been disrupted amid the Iran crisis. If Middle Eastern crude supply were to halt completely for a temporary period, the immediate impact would be logistical and price-driven, with supply risks intensifying if movement through the Strait of Hormuz is disrupted for longer, said Sumit Ritolia, Lead Research Analyst, Refining & Modeling at Kpler. A closure of Strait of Hormuz would at first impact prompt cargo liftings. "However, refiners typically maintain

Both ​China and India, Asia's top energy consumers, source around half of their crude imports from the West Asia, but India has far less oil in storage than its neighbor

New ‌Delhi has not officially announced plans to halt Russian oil imports

The MEA said India is open to sourcing crude from Venezuela and other countries based on commercial viability, adding that energy security for 1.4 billion people remains its top priority

Indian refiners have been redrawing crude import strategies in recent ​months to shift away from top supplier Russia and boost imports from the Middle East

Indian companies have already booked cargoes loading in February and arriving in March, so a wind-down period would be needed to fulfil existing commitments

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

The US effort to supply Venezuelan crude to India comes as Washington also seeks to reduce Russian oil revenues that are funding the war in Ukraine

In order to avoid tracking, many of these ships turn off their automatic identification system, disappearing from standard maritime monitoring

India's Russian crude imports fell sharply in December as refiners grew cautious amid tighter US and EU sanctions, even as discounts widened and supplies stayed available

India, a sovereign nation, is free to buy oil from sources it considers beneficial, the Kremlin said on Monday, while expressing confidence that New Delhi will stick to the policy of ensuring its economic interests. On August 6, the US imposed additional 25 per cent tariffs on India for its purchase of oil and petroleum products from Russia. At the end of August, US tariffs on imports of Indian goods and services were increased to 50 per cent. "India, being and remaining a sovereign nation, carries out foreign trade operations and purchases energy resources where it is beneficial for itself," the Kremlin spokesman, Dmitry Peskov, told reporters in the wake of last Friday's Summit talks between President Vladimir Putin and Prime Minister Narendra Modi in New Delhi. Speaking after his talks with Prime Minister Modi, the Russian leader assured that Moscow will remain India's reliable energy supplier. "And, as far as we understand, our Indian partners will continue this line to ensure

European think tank CREA has claimed that these shipments made India the largest national destination for crude moved by Russia's growing 'shadow fleet'

India's reduced Russian oil orders come after the US raised tariffs on Indian imports to 50% and imposed sanctions on Russian oil giants Rosneft and Lukoil

On a yearly basis, crude oil imports rose 6.1%, from 18.79 million tons in September 2024, data from the Petroleum Planning and Analysis Cell shows

India's state oil companies plan to import up to three large US LPG cargoes per month in 2026, marking the country's first long-term US supply deal