Indian Refiners Boost Russian Oil Imports as War Hits Supply

Indian refiners increase Russian oil imports again as companies rush to secure supply during ongoing Middle East disruptions.

Indian refiners have booked about 60 million barrels of Russian crude for delivery next month, easing fears of shortages as the war impacts flows through the Strait of Hormuz.

The cargoes were secured at premiums of USD 5 to USD 15 per barrel over Brent, according to people familiar with the matter. This volume matches March levels but is more than double February purchases, based on Kpler data. The spike follows a US waiver allowing India to import Russian oil already loaded before March 5, later extended to shipments at sea before March 12.

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India, heavily dependent on imports, had reduced Russian buying late last year under US pressure, shifting to supplies from Saudi Arabia and Iraq. However, much of that crude is now stuck in the Persian Gulf due to the conflict, forcing refiners back to Moscow’s barrels. Companies like Mangalore Refinery & Petrochemicals Ltd. and Hindustan Mittal Energy Ltd. have re-entered the Russian market after avoiding it since December.

Indian refiners step for Russian oil imports is not the only a shift. To diversify supply, India is also increasing Venezuelan crude purchases, with April arrivals expected to hit 8 million barrels, the highest since October 2020.

Officials in New Delhi expect the US waiver to continue if disruptions persist in Hormuz. Meanwhile, Russia is benefiting from the renewed demand, earning its highest crude export revenues since March 2022.