India has purchased around 60 million barrels of Russian crude oil for delivery next month as supply chains face strain due to disruptions caused by the ongoing conflict in West Asia, according to a Bloomberg report citing people familiar with the matter.
The purchases are aimed at easing concerns over crude availability as shipping flows through the Strait of Hormuz remain constrained.
According to the report, the cargoes were booked at premiums ranging between $5 and $15 per barrel above Brent, reflecting tighter supply conditions and strong demand for accessible barrels.
The volume is roughly in line with India’s purchases for the current month but represents more than double the quantity bought in February, data intelligence firm Kpler indicated, as cited by the report.
The report noted that the buying activity was facilitated after a US waiver to take delivery of Russian oil cargoes that had already been loaded onto vessels before March 5, helping offset shortages triggered by the effective closure of the Strait of Hormuz.
The waiver was later expanded to include shipments already at sea before March 12 and extended to additional countries facing supply disruptions, according to the report.
REFINERS RETURN TO RUSSIAN MARKET AFTER MONTHS OF REDUCED BUYING
Bloomberg reported that Indian refiners, including Mangalore Refinery & Petrochemicals Ltd. (MRPL) and Hindustan Mittal Energy Ltd., have resumed buying Russian crude after largely staying away from such purchases since December amid pressure from the United States.
India had shifted toward supplies from Saudi Arabia and Iraq in recent months.
However, much of those cargoes became stuck in the Persian Gulf following the outbreak of hostilities in the region, tightening supply availability and prompting refiners to revisit Russian sourcing options, the report said.
The report further cited people familiar with the matter as saying that officials in New Delhi expect the US waiver to remain in place as long as disruptions to shipping through Hormuz persist.
India had emerged as a key buyer of discounted Russian crude.
According to the report, Russia is now benefiting from renewed demand and higher oil prices, with the Kremlin earning its highest revenues from crude exports since March 2022, shortly after the Ukraine conflict began.
INDIA LOOKS TO DIVERSIFY SOURCING AS WAR CONTINUES
In addition to increasing purchases from Russia, Indian refiners are also exploring alternative supply sources as geopolitical uncertainty continues to affect energy markets.
According to the Bloomberg report citing Kpler data, India’s imports of Venezuelan crude for April arrival are projected to reach 8 million barrels, marking the highest level since October 2020.
The move reflects efforts by Indian processors to diversify supply channels and reduce exposure to disruptions affecting specific regions or shipping routes.
TANKER ARRIVALS CONTINUE AMID MARKET VOLATILITY
A report earlier this week highlighted ongoing energy shipments reaching Indian ports despite volatility in global markets.
According to news agency ANI, a Russian oil-laden tanker, MT Aqua Titan, chartered by Mangalore Refinery and Petrochemicals Ltd., arrived in India on March 22 and is anchored in the Arabian Sea approximately 10 nautical miles off the Mangaluru coast.
The arrival comes amid heightened concerns over global energy supply as geopolitical tensions impact crude availability and supply chains.
The report also noted that a cargo vessel carrying Liquefied Petroleum Gas (LPG) from Texas reached New Mangalore Port, underscoring the continued inflow of fuel shipments.
According to ANI, the Shipping Ministry said there has been no congestion reported at any Indian port, while confirming that all 22 Indian ships and 611 sailors in the Persian Gulf region are safe amid the conflict.
Special Secretary Rajesh Kumar Sinha said authorities are closely monitoring developments in the region.
ANI also reported that New Mangalore Port has waived cargo-related charges for crude oil and LPG shipments between March 14 and March 31, a measure aimed at facilitating smooth import operations during the period of supply uncertainty.
The report further noted that Indian-flagged crude tanker Jag Laadki successfully arrived at Adani Ports Mundra in Gujarat, while LPG carriers MT Shivalik and MT Nanda Devi, carrying approximately 92,712 metric tonnes of LPG, crossed the Strait of Hormuz earlier in March before reaching India.
