India Seeks Diversified Oil Supplies Amid Russian Crude Arrival

Russian Crude Oil Diversion to India Amid West Asia Conflict

9.5 million barrels of Russian crude are currently on vessels near Indian waters, poised to arrive within weeks and potentially offset disruptions linked to the escalating conflict in West Asia.

Moscow is ready to support India with energy supplies if disruptions to shipments from the Gulf intensify, according to Russian officials. The development comes as the conflict triggered by US-Israeli strikes on Iran enters its fifth day, with blasts reported across several West Asian cities.

India currently holds 6-8 weeks of fuel stocks, sufficient to meet domestic demand for petrol, diesel, and other fuels. However, officials are exploring alternative sources to import crude oil, liquefied petroleum gas (LPG), and liquefied natural gas (LNG) if the West Asia conflict lasts beyond 10-15 days.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The Strait of Hormuz, a critical oil shipping chokepoint, has become difficult to access after vessels were struck by Iranian attacks following US and Israeli strikes on targets inside Iran. About 40% of India's crude imports pass through this passage, connecting Gulf oil producers with global markets and carrying a significant share of global crude exports.

India's energy strategy is to diversify supply based on market conditions and evolving international dynamics, according to officials. Any increase in Russian oil purchases would depend on guidance from the Indian government, while trade talks with the United States continue. Russia has also indicated it is ready to supply LNG to India after Qatar halted production due to the West Asia conflict.