India has upped purchases of Russian oil in June, importing more than the combined volumes from Middle Eastern suppliers such as Saudi Arabia and Iraq, amid volatile market caused by Israel's attack on Iran.
On Sunday, the US military struck three nuclear sites in Iran, directly supporting Israel, which first struck Iranian nuclear sites on June 13.
In June, Indian refiners are projected to import 2-2.2 million barrels of Russian oil per day, the highest in the last two years and more than the total volumes bought from Iraq, Saudi Arabia, the UAE and Kuwait, preliminary data by global trade analytics firm Kpler showed.
India's oil imports from Russia were 1.96 million barrels per day (bpd) in May.
Furthermore, imports from the US rose to 439,000 bpd in June, a massive jump from 280,000 bpd purchased in the previous month.
The projections for imports from the Middle East is at around 2 million bpd in June, lower than the May's buying, according to Kpler.
India is the world's third-largest oil importing and consuming nation. It bought about 5.1 million barrels of crude oil, which is converted into fuels like petrol and diesel in refineries.
India began importing large volumes of Russian oil post the invasion of Ukraine in February 2022. The country has traditionally been an importer of Middle East oil. Russian imports rose because the oil was available at a significant discount to other international benchmarks due to Western sanctions and some European countries shunning purchases.
This led to a dramatic rise in import of Russian oil, growing from less than 1 per cent of its total crude oil imports to a staggering 40-44 per cent in a short period.
The conflict in the Middle East has so far not impacted oil supplies.
"While supplies remain unaffected so far, vessel activity suggests a decline in crude loadings from the Middle East in the coming days," Sumit Ritolia, Lead Research Analyst, Refining & Modeling at Kpler, told PTI.
"Shipowners are hesitant to send empty tankers (ballasters) into the Gulf, with the number of such vessels dropping from 69 to just 40, and (Middle East and Gulf) MEG-bound signals from the Gulf of Oman halving."
This implies that the current MEG supplies are likely to tighten in the near term, potentially triggering future adjustments in India's sourcing strategy, he said.
The Strait of Hormuz lies between Iran to the north and Oman and the United Arab Emirates to the south and serves as the main route for oil exports from Saudi Arabia, Iran, Iraq, Kuwait, and the UAE. Many liquefied natural gas (LNG) shipments, especially from Qatar, also pass through the strait.
Iran has now threatened to close the Strait of Hormuz as military conflict in the region picks pace. The corridor sees a fifth of the world's oil and a major LNG export transit. India imports about 40 per cent of all its oil and about half of its gas through the narrow Strait.
According to Kpler, concerns over a potential closure of the Strait of Hormuz have intensified following Israel's pre-emptive strikes on Iranian military and nuclear infrastructure. Iranian hardliners have threatened closure, and state media have warned of oil spiking to $400 per barrel.
"Yet, Kpler analysis assigns a very low probability to a full blockade, citing strong disincentives for Iran," Ritolia said.
This is mainly because China, Iran's largest oil importer (which imports 47 per cent of its seaborne crude from the Middle East Gulf), would be directly impacted.
Further, Iran's reliance on Hormuz for oil exports via Kharg Island (handles 96 per cent of its exports) makes self-blockade counterproductive.
Additionally, Tehran has made efforts over the past two years to rebuild ties with key regional actors, including Saudi Arabia and the UAE, both of which rely heavily on the Strait for exports and have publicly condemned Israel's actions. Cutting off flows would risk unraveling those diplomatic gains.
Another reason is that the closure would also provoke international military retaliation. Any Iranian naval build-up would be detectable in advance, likely triggering a preemptive US and allied response.
At most, isolated sabotage efforts could disrupt flows for 24-48 hours, the estimated time required for US forces to neutralise Iran's conventional naval assets, according to Kpler.
Ritolia said India's import strategy has evolved significantly over the past two years.
Russian oil (Urals, ESPO, Sokol) does not use Hormuz. It flows via the Suez Canal, Cape of Good Hope, or Pacific Ocean.
Indian refiners have built refining and payment flexibility, while optimizing runs for a wider crude slate. Even US, West African, and Latin American flows - though costlier - are increasingly viable backup options.
"India's June volumes from Russia and the US confirm this resilience-oriented mix," he said. "If conflict deepens or there is any short-term disruption in Hormuz, Russian barrels will rise in share, offering both physical availability and pricing relief. India may pivot harder toward the US, Nigeria, Angola, and Brazil, albeit at higher freight costs.
Also, India may tap its strategic reserves (covering 9-10 days of imports) to bridge any shortfall.
On Sunday, the US military struck three nuclear sites in Iran, directly supporting Israel, which first struck Iranian nuclear sites on June 13.
In June, Indian refiners are projected to import 2-2.2 million barrels of Russian oil per day, the highest in the last two years and more than the total volumes bought from Iraq, Saudi Arabia, the UAE and Kuwait, preliminary data by global trade analytics firm Kpler showed.
India's oil imports from Russia were 1.96 million barrels per day (bpd) in May.
Furthermore, imports from the US rose to 439,000 bpd in June, a massive jump from 280,000 bpd purchased in the previous month.
The projections for imports from the Middle East is at around 2 million bpd in June, lower than the May's buying, according to Kpler.
India is the world's third-largest oil importing and consuming nation. It bought about 5.1 million barrels of crude oil, which is converted into fuels like petrol and diesel in refineries.
India began importing large volumes of Russian oil post the invasion of Ukraine in February 2022. The country has traditionally been an importer of Middle East oil. Russian imports rose because the oil was available at a significant discount to other international benchmarks due to Western sanctions and some European countries shunning purchases.
This led to a dramatic rise in import of Russian oil, growing from less than 1 per cent of its total crude oil imports to a staggering 40-44 per cent in a short period.
The conflict in the Middle East has so far not impacted oil supplies.
"While supplies remain unaffected so far, vessel activity suggests a decline in crude loadings from the Middle East in the coming days," Sumit Ritolia, Lead Research Analyst, Refining & Modeling at Kpler, told PTI.
"Shipowners are hesitant to send empty tankers (ballasters) into the Gulf, with the number of such vessels dropping from 69 to just 40, and (Middle East and Gulf) MEG-bound signals from the Gulf of Oman halving."
This implies that the current MEG supplies are likely to tighten in the near term, potentially triggering future adjustments in India's sourcing strategy, he said.
The Strait of Hormuz lies between Iran to the north and Oman and the United Arab Emirates to the south and serves as the main route for oil exports from Saudi Arabia, Iran, Iraq, Kuwait, and the UAE. Many liquefied natural gas (LNG) shipments, especially from Qatar, also pass through the strait.
Iran has now threatened to close the Strait of Hormuz as military conflict in the region picks pace. The corridor sees a fifth of the world's oil and a major LNG export transit. India imports about 40 per cent of all its oil and about half of its gas through the narrow Strait.
According to Kpler, concerns over a potential closure of the Strait of Hormuz have intensified following Israel's pre-emptive strikes on Iranian military and nuclear infrastructure. Iranian hardliners have threatened closure, and state media have warned of oil spiking to $400 per barrel.
"Yet, Kpler analysis assigns a very low probability to a full blockade, citing strong disincentives for Iran," Ritolia said.
This is mainly because China, Iran's largest oil importer (which imports 47 per cent of its seaborne crude from the Middle East Gulf), would be directly impacted.
Further, Iran's reliance on Hormuz for oil exports via Kharg Island (handles 96 per cent of its exports) makes self-blockade counterproductive.
Additionally, Tehran has made efforts over the past two years to rebuild ties with key regional actors, including Saudi Arabia and the UAE, both of which rely heavily on the Strait for exports and have publicly condemned Israel's actions. Cutting off flows would risk unraveling those diplomatic gains.
Another reason is that the closure would also provoke international military retaliation. Any Iranian naval build-up would be detectable in advance, likely triggering a preemptive US and allied response.
At most, isolated sabotage efforts could disrupt flows for 24-48 hours, the estimated time required for US forces to neutralise Iran's conventional naval assets, according to Kpler.
Ritolia said India's import strategy has evolved significantly over the past two years.
Russian oil (Urals, ESPO, Sokol) does not use Hormuz. It flows via the Suez Canal, Cape of Good Hope, or Pacific Ocean.
Indian refiners have built refining and payment flexibility, while optimizing runs for a wider crude slate. Even US, West African, and Latin American flows - though costlier - are increasingly viable backup options.
"India's June volumes from Russia and the US confirm this resilience-oriented mix," he said. "If conflict deepens or there is any short-term disruption in Hormuz, Russian barrels will rise in share, offering both physical availability and pricing relief. India may pivot harder toward the US, Nigeria, Angola, and Brazil, albeit at higher freight costs.
Also, India may tap its strategic reserves (covering 9-10 days of imports) to bridge any shortfall.
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