Indian refiners tap Russian oil cargoes after US 30-day waiver
Move aims to ease supply worries as West Asia conflict disrupts Middle East oil flows
image for illustrative purpose
New Delhi: Indian refiners have begun buying some of the over 15 million barrels of Russian crude currently floating on tankers near the country, as they move to offset supply concerns arising from disruptions in the Middle East.
Sources said refiners stepped up purchases after the US Treasury Department issued a 30-day licence allowing India to buy Russian oil cargoes currently stuck at sea.
India, once among the top buyers of Russian oil, had curtailed purchases after US pressure to reduce flows of money to Moscow’s war effort in Ukraine. Imports of Russian crude in February fell to 1.04 million barrels per day — the lowest since November 2022.
The US had also linked tariff cuts on Indian goods to New Delhi reducing purchases of Russian crude, leaving several shiploads of Russian oil stranded on the high seas, sources said.
India had earlier turned to discounted Russian crude after Western sanctions in February 2022. Russian cargoes peaked at 2.15 million barrels per day in May 2023.
Now, escalating conflict in West Asia has blocked shipments through the Strait of Hormuz, raising concerns over oil and LNG supplies from the Middle East. Indian refiners are therefore balancing purchases from Russian cargoes at sea and other sources to ensure uninterrupted domestic fuel supply.
US Treasury Secretary Scott Bessent called the waiver a stopgap measure meant to keep oil flowing into global markets, adding Washington expects India to eventually ramp up purchases of US crude.
India currently has crude inventories sufficient for about 25 days of demand and sources 40-50 per cent of its crude imports from the Middle East via the Strait of Hormuz.
According to Kpler analyst Sumit Ritolia, around 130 million barrels of Russian crude remain on the water across the Indian Ocean, Red Sea/Suez routes and around Singapore.
