Indian refiners have secured around 60 million barrels of Russian crude for delivery next month, according to sources familiar with the matter, helping to ease supply concerns amid disruptions caused by the ongoing Middle East conflict.
The shipments were reportedly purchased at premiums ranging between $5 and $15 per barrel over Brent crude. While the volume is in line with this month’s purchases, it is more than double the imports recorded in February, as per data from analytics firm Kpler.
The surge in buying follows a US waiver permitting India to import Russian oil that had already been loaded onto vessels before early March, aimed at mitigating supply shortages triggered by disruptions in the Strait of Hormuz. The exemption was later broadened to include additional countries and extended to cover cargoes already at sea before March 12.
India, which depends heavily on imported crude, had significantly increased its intake of discounted Russian oil after the Ukraine conflict began in 2022. However, purchases declined toward the end of last year due to US pressure, with refiners shifting to supplies from Saudi Arabia and Iraq—many of which later faced delays due to the regional conflict.
Officials in New Delhi anticipate that the US waiver could be extended if disruptions in the Strait of Hormuz continue. Refiners such as Mangalore Refinery & Petrochemicals Ltd. and Hindustan Mittal Energy Ltd., which had previously reduced Russian imports, have now resumed buying, sources said.
Alongside increased Russian imports, Indian refiners are also diversifying supply sources. Imports of Venezuelan crude for April delivery are expected to reach around 8 million barrels—the highest level since October 2020, according to Kpler data.
Meanwhile, Russia is benefiting from the renewed demand and higher oil prices, with its crude export revenues reaching their highest levels since March 2022, shortly after the Ukraine conflict began.
