Russia Offers Crude Diversion to India Amid Middle East Supply Disruptions

Russia has signalled its readiness to divert crude oil shipments to India to help offset supply disruptions emerging from the Middle East, according to a Reuters report. About 9.5 million barrels of Russian crude are already in vessels near Indian waters and can reach domestic refiners within weeks.

The development comes as India faces heightened vulnerability due to limited storage capacity and rising risks affecting key shipping routes. The disruption has increased pressure on the world’s third‑largest oil consumer to seek alternative suppliers to manage near‑term shortfalls.

Supply Vulnerability and Strategic Constraints

India currently holds crude stocks covering only about 25 days of demand, leaving the country exposed to sharp supply disruptions. Refiners also maintain limited inventories of gasoil, gasoline and liquefied petroleum gas, adding to concerns about constrained buffers at a time of rising geopolitical tension.

The restricted storage capacity creates challenges when global supply routes are disrupted or rerouted. The situation underscores the need for alternative sourcing arrangements to stabilise domestic availability.

Disruptions At the Strait of Hormuz Impact Import Flows

Around 40% of India’s crude imports pass through the Strait of Hormuz, one of the most critical global oil corridors. The near‑closure of the route has created immediate supply concerns, prompting refiners to adjust procurement plans.

Indian refineries process about 5.6 million barrels per day of crude, underscoring the scale of reliance on uninterrupted maritime flows. The Strait became inaccessible after vessels were struck during Iranian attacks that followed U.S. and Israeli strikes on Iran‑based targets.

Shifts In Russian Crude Share and Market Adjustments

India’s imports of Russian crude fell to about 1.1 million barrels per day in January, marking the lowest level since November 2022. The decline coincided with New Delhi’s efforts to secure relief from U.S. tariffs, reducing Moscow’s share of India’s overall oil imports to 21.2%.

The share reportedly recovered to around 30% in February as refiners adjusted to evolving supply conditions. The availability of Russian crude nearer to Indian waters supports quicker delivery timelines for domestic refiners.

Read More: India Curbs Gas Supply to Industries After Qatar Halts LNG Production Amid Gulf Tensions.

Conclusion

India is facing heightened supply risks as Middle East tensions restrict shipping access through the Strait of Hormuz. Russia’s readiness to divert crude shipments offers temporary relief, with nearly 9.5 million barrels already positioned near Indian waters.

Domestic refiners continue to adjust procurement strategies amid declining storage buffers and shifting global flows. The evolving situation underscores India’s vulnerability to regional supply disruptions and the need for diversified sourcing.

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