Indian oil refineries have shifted their crude oil purchasing patterns, turning to suppliers in Latin America and Africa after Middle Eastern supply chains faced disruptions, according to trade data sources.
The world’s third-largest oil importing nation and consumer historically relied heavily on Middle Eastern crude until conflict erupted at the end of February. The Israeli-U.S. war on Iran has created shipping restrictions through the Strait of Hormuz, forcing refiners to seek alternative sources.
Trade data from Kpler reveals that during April and May, Indian refineries increased their purchases from Venezuela, Brazil, Angola and Nigeria to compensate for the supply gaps, while maintaining their Russian oil acquisitions.
In April, India halted purchases from Iraq due to suspended exports, but resumed Iranian oil imports for the first time in seven years after Washington issued a temporary waiver aimed at stabilizing global oil markets.
Russian oil imports to India dropped by approximately 29.4% from March levels to 1.6 million barrels daily, primarily due to Nayara Energy closing its 400,000-barrel-per-day refinery for scheduled maintenance.
May projections indicate India will receive roughly 1.9 million barrels per day from Russia and about 41,000 barrels per day from Iraq, according to preliminary Kpler data.
India’s total oil imports reached 4.57 million barrels daily in April, matching March levels but representing a 15.5% decrease compared to the previous year.
Imports from the United Arab Emirates surged in April to 669,700 barrels per day from March’s 230,600 barrels per day, while Saudi Arabian oil intake remained steady at approximately 619,500 barrels per day.
The UAE and Saudi Arabia maintain the only Gulf pipeline systems that can export crude oil without using the Strait of Hormuz, unlike Kuwait, Iraq, Qatar, and Bahrain, which depend on the waterway for shipments.
The Organization of the Petroleum Exporting Countries’ portion of India’s oil imports climbed to 45.2% in April from roughly 30% in March, with the UAE counted as a member during that period.
The UAE withdrew from OPEC in May, eliminating its obligation to follow oil production quotas.
Increased UAE imports helped prevent a larger drop in the Middle East’s share of India’s oil supply, while Russian oil’s portion fell to about 35% from nearly 50%.
Russia maintained its position as India’s primary oil supplier, with the UAE and Saudi Arabia following. Brazil ranked as the fourth-largest supplier, and Venezuela came in fifth. Data suggests Venezuela is positioned to become the fourth-largest supplier in May.
