India Secures 60 Million Barrels of Russian Oil for April Amid Supply Concerns

Indian Refiners Boost Russian Oil Purchases Amid Global Disruptions

60 million barrels of Russian oil have been booked for delivery next month by Indian refiners, easing supply concerns as the Middle East war chokes flows. These purchases were made at premiums of $5 to $15 a barrel above Brent prices.

The volume of Russian oil purchased by Indian refiners is similar to that of this month, but more than double the amount acquired in February, according to data intelligence firm Kpler. This buying spree follows a US waiver that allowed India to take Russian oil already loaded onto vessels before March 5 to offset shortages caused by the effective closure of the Strait of Hormuz.

The US waiver has been expanded to include other countries and updated to allow purchases of crude already at sea before March 12. India, heavily reliant on imported oil, has become a major buyer of discounted Russian crude following the invasion of Ukraine in early 2022. However, the country sharply cut back purchases from late last year under US pressure, turning instead to barrels from Saudi Arabia and Iraq, much of which then became trapped inside the Persian Gulf after the outbreak of the war.

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Refiners such as Mangalore Refinery & Petrochemicals Ltd. and Hindustan Mittal Energy Ltd., which had avoided Russian oil since December, have returned to the market. Officials in New Delhi expect the US waiver to be extended as long as disruptions in Hormuz persist.

In addition to buying more Russian oil, Indian processors are also looking elsewhere to diversify their supply as the war drags on. The country's purchases of Venezuelan crude for April arrival are projected at 8 million barrels, the highest since October 2020, according to Kpler.

Russia is reaping bumper profits on renewed demand and elevated prices for its oil. The Kremlin is earning the most from its crude exports since March 2022, shortly after Moscow's troops poured into Ukraine.