India Ramps Up Oil Imports from Russia, U.S. Amid Escalating Iran-Israel Conflict
New Delhi, June 23: India has increased its crude oil imports from Russia and the United States in June, exceeding volumes from traditional Middle Eastern suppliers amid escalating conflict between Israel and Iran. This strategic shift in oil sourcing comes as concerns rise over potential disruptions to oil supply chains through the Strait of Hormuz.
According to the global trade analytics firm Kpler, Indian refiners are expected to import between 2 million and 2.2 million barrels per day (bpd) of Russian crude in June—the highest level in the past two years. This amount surpasses the combined imports from key Middle Eastern nations, including Iraq, Saudi Arabia, the United Arab Emirates (UAE), and Kuwait. In May, India imported 1.96 million bpd from Russia.
At the same time, imports from the U.S. have also seen a significant increase, jumping to 439,000 bpd in June from 280,000 bpd in May. This marks a growing diversification in sourcing to mitigate geopolitical risks, particularly those related to the ongoing Israel-Iran conflict.
Tensions escalated after Israel struck Iranian nuclear facilities on June 13, followed by U.S. military strikes on three Iranian sites. While oil supplies have not yet been directly impacted, shipping activity data suggests a possible slowdown in crude loadings from the Middle East.
Kpler’s lead analyst, Sumit Ritolia, noted a decline in vessel activity heading towards the Gulf, with a significant drop in the number of empty tankers entering the region. This could indicate a tightening of supply in the coming weeks.
The Strait of Hormuz, a critical maritime route for about 40% of India’s oil and nearly half of its natural gas imports, remains a major concern. Tehran has threatened to block the strait in retaliation, which could disrupt global energy markets. However, Kpler assigns a low probability to a complete closure, citing Iran’s reliance on the same route for its own exports and the potential backlash from key allies like China, Saudi Arabia, and the UAE.
India, the world’s third-largest oil importer, imported around 5.1 million bpd of crude in June, which is refined into petrol, diesel, and other fuels. Its shift to Russian oil began in 2022 after Western sanctions on Moscow made Russian crude significantly cheaper.
“India’s June volumes from Russia and the U.S. confirm a resilience-focused strategy,” Ritolia said. “If tensions escalate further, India could turn to alternative suppliers like Nigeria, Angola, and Brazil, even though it would come at higher costs.”
In the event of short-term supply disruptions, India is prepared to draw from its strategic reserves, which cover about 9 to 10 days of imports.
As geopolitical uncertainties persist, India’s energy strategy highlights its need for diverse and flexible sourcing to ensure long-term stability.
Source: The Hindu
