Amid rising concerns over crude supply disruptions linked to the escalating conflict in West Asia, Russia is prepared to divert around 9.5 million barrels of crude oil to India, Reuters reported citing an unnamed industry source which according to the news agency is familiar with the matter.
The cargoes are currently on vessels near Indian waters and could arrive within weeks, potentially providing relief to Indian refiners as the country explores alternative supply options.
The development comes as tensions around the Strait of Hormuz threaten global energy flows. The narrow waterway is one of the world’s most critical oil transit routes, handling roughly one-third of global seaborne crude shipments and about 20 percent of Liquefied Natural Gas (LNG) trade.
India currently holds crude stocks covering roughly 25 days of demand, while inventories of refined products such as gasoil, petrol and liquefied petroleum gas are also relatively limited.
Around 40 percent of India’s crude imports move through the Strait of Hormuz, making the country particularly vulnerable to disruptions in the region.
Indian refiners process about 5.6 million barrels per day of crude, and the government is reportedly exploring alternative supply routes to manage potential supply shocks.
Russia, which has supplied discounted crude to India since the Ukraine conflict in 2022, is also prepared to sell liquefied natural gas to India after Qatar, one of the country’s key LNG suppliers, halted production amid the widening regional conflict.
Industry sources indicated to Reuters that discounts on Russian crude could narrow as tightening global supplies shift the market dynamics in favour of sellers.
The evolving geopolitical situation in West Asia has raised concerns over global oil prices, supply security and shipping risks across key maritime trade routes.
