India’s crude oil supply remains stable despite geopolitical tensions in the Middle East. Rising Russian crude shipments and diversified sourcing strategies are helping ensure energy security for one of the world’s largest oil consumers.
The total Russian crude arrivals for the entire month could approach or perhaps surpass 2 mb/d if the present shipment plans and cargo movements continue.
India Strengthens Crude Oil Supply Amid Global Tensions
The government emphasized on Wednesday that its diversification strategy guaranteed that the currently contracted cargoes exceed the import volume that came through the Strait of Hormuz, guaranteeing the security of crude oil supplies for India, which consumes 5.5 million barrels per day.
India Diversifies Oil Import Sources
India now imports oil from about 40 nations, according to Sujata Sharma, Joint Secretary, Ministry of Petroleum and Natural Gas. As a result, routes outside the Strait of Hormuz now account for around 70% of oil imports, up from roughly 55% previously.
📊 India Oil Import Overview
- Daily Consumption: 5.5 million barrels
- Countries Supplying Oil: About 40 nations
- Imports Outside Hormuz: Around 70%
- Key Suppliers: Russia, US, West Africa
- Supply Strategy: Diversification to reduce geopolitical risk
“To further bolster the position of the crude oil supply, two more crude cargoes are already en route and will arrive in the upcoming days. All around the nation, refineries are running at extremely high capacity utilization levels—in certain instances, even above 100% capacity utilization,” she continued.
Additionally, the US lifted some oil-related sanctions on Russia, which allowed India, the third-largest user in the world, to replenish supplies, which are predicted to reach 2 million barrels per day (mb/d) or more in March 2026.
Russian Crude Imports Rise Rapidly
According to Kpler, India seems to be in a rather good situation with regard to its supply of crude oil and processed products, despite the continued concerns around the Strait of Hormuz.
“Russian crude into India is already estimated at around 1.5 mb/d, demonstrating the rapid pace of inflows,” stated Sumit Ritolia, Lead Research Analyst for Refining & Modeling at Kpler, to businessline. In the future, total Russian crude arrivals for the entire month could approach or perhaps surpass 2 mb/d if the present shipment schedules and cargo movements continue.
🛢️ Russian Oil Supply to India
- Current Imports: About 1.5 million barrels per day
- Expected March Imports: Around or above 2 mb/d
- Previous Import Level: 800,000–1,000,000 barrels per day
- Key Factor: Relaxation of US oil sanctions on Russia
- Market Impact: Higher availability for Indian refiners
India’s purchases of Russian crude have increased dramatically in recent days. He stated that prior to the rise of geopolitical tensions earlier in February, estimates for Russian crude imports into India were between 800 and 1,000 thousand barrels per day.
However, trade flows have significantly increased as a result of the changes and the US giving India the freedom to keep buying Russian barrels, allowing India to purchase volumes far above the previous baseline levels.
Refineries Adjust Production Strategy
Ritolia noted that LPG generation is another operational factor for refineries. He continued, “Domestic refineries have the ability to optimize LPG output by shifting feedstocks away from petrochemical production toward LPG recovery and by changing unit operations to maximize yields.”
Although the supply positions for crude oil and refined products are still favorable, Kpler emphasized that the availability of LPG would probably be the most crucial area to keep an eye on in the upcoming weeks. Kpler has also been emphasizing the importance of this aspect for India’s short-term energy balance over the last week.
Given its comfortable position in terms of crude oil and product supply, the government has been pressuring refiners to produce more LPG.
Despite the uncertainty surrounding the Strait of Hormuz and wider geopolitical issues, India will continue to have a sufficient supply of oil thanks to the consistent intake of Russian barrels and extra sourcing from the US and West Africa.
Frequently Asked Questions
1. What made the Indian government claim that the supply of crude oil is safe?
The government claimed that because India buys oil from almost 40 nations, it is less dependent on any one route, such as the Strait of Hormuz, and hence has a secure supply of crude oil. Nowadays, routes beyond the Strait account for around 70% of imports, guaranteeing a steady supply even in times of geopolitical unrest.
2. What is India’s daily consumption of crude oil?
India is one of the biggest energy consumers in the world, using about 5.5 million barrels of crude oil every day.
3. What is the anticipated amount of Russian crude oil that India would import in March 2026?
Market analysts predict that imports of Russian crude would either approach or surpass 2 million barrels per day (mb/d) in March 2026.
4. What is the reason for the recent rise in Russian crude shipments into India?
Imports have surged after the US relaxed some of its oil-related sanctions against Russia, making it easier for India to keep buying Russian crude oil.
5. Which energy product might be under observation in the upcoming weeks?
The supply of LPG may need to be monitored, according to analysts, because demand may increase based on domestic consumption and refinery production, even though crude oil supplies are still comfortable.
Conclusion
Despite tensions around the Strait of Hormuz, India has been able to maintain reliable energy supply thanks to its diverse crude oil import strategy and growing inflows from West Africa, the US, and Russia.
Although LPG supply trends will continue to be a crucial element to monitor in the near future, the nation is still well-positioned to manage its crude oil needs with refineries running at full capacity and more supplies on the way.
Disclaimer: This article is for informational purposes only and should not be considered energy or investment advice. Market conditions and geopolitical developments may change rapidly.
