Indian refiners diversify crude sources as West Asia disruptions persist

Indian refiners are procuring crude oil cargoes from Russia, the UAE and South America during August as disruptions in West Asia, caused by the conflict impacting supplies through the Strait of Hormuz and the Bab-el-Mandeb, force vessels to take longer routes. Despite the threat of the Graham Bill and potential secondary tariffs, Russia remains India's largest crude supplier, according to data provider Kpler.

Replacing Russian crude completely would be challenging, particularly while Middle Eastern supply and logistics remain constrained, said Sumit Ritolia, Kpler's Lead Research Analyst. UAE crude supplies to India have remained strong, supported by pipeline infrastructure to Fujairah and logistics outside the Strait of Hormuz. However, rising crude costs, a weak rupee against the US dollar, and shrinking discounts on Russian and Venezuelan crude are adding to India's import bill.