India’s oil imports changed course in April and May after restrictions on shipping through the Strait of Hormuz put pressure on supplies from the Middle East. In response, Indian refineries increased their crude purchases in Latin America and Africa, with higher volumes coming from Venezuela, Brazil, Angola, and Nigeria, according to preliminary Kpler data cited by trading sources.
In addition, the adjustment underscores how the world’s third-largest oil importer and consumer is trying to safeguard its supply when a key Gulf route faces disruptions. India had purchased much of its crude in the Middle East before the Iran-related conflict escalated in late February, but the new context forced it to seek alternative cargoes without fully abandoning Russian oil.
Oil imports gain ground from Latin America and Africa
In April and May, Venezuela, Brazil, Angola, and Nigeria emerged as more relevant suppliers for Indian refineries. This shift helped cover part of the shortfall caused by difficulties in shipments from the Gulf, where several countries rely on the Strait of Hormuz to place their crude in international markets.
Likewise, Brazil ranked as India’s fourth-largest oil supplier in April, while Venezuela took fifth place. According to Kpler’s preliminary estimates, Venezuela could climb to fourth position in May, reinforcing Latin America’s weight within the new supply mix.
Russia retains first place despite the decline
Meanwhile, Russia remained India’s main crude supplier in April, although its shipments fell 29.4% compared with March, to 1.6 million barrels per day. The drop was partly linked to maintenance at Nayara Energy’s refinery, with a capacity of 400,000 barrels per day.
However, preliminary data point to a recovery in May. India would receive around 1.9 million barrels per day of Russian oil, while Iraqi cargoes would return on a limited basis at about 41,000 barrels per day. Even with that improvement, the share of Russian crude fell from nearly 50% to about 35% of India’s imports.
Iraq pauses and Iran reappears after seven years
At the same time, India did not import oil from Iraq in April due to disruptions in exports. The figure drew attention because Iraq usually ranks among the important suppliers for Indian refineries, especially given its logistical proximity and its weight within Middle East supply.
In parallel, India received Iranian oil for the first time in almost seven years, following a temporary waiver granted by Washington to help stabilize global oil prices. The transaction highlights the flexible nature of India’s purchases in an environment of geopolitical tension and shipping routes under pressure.
The United Arab Emirates and Saudi Arabia sustain Gulf flows
Despite the disruptions, the United Arab Emirates and Saudi Arabia helped contain the decline in crude from the Middle East. Imports from the United Arab Emirates rose to nearly 669,700 barrels per day in April, up from 230,600 barrels per day in March. Saudi shipments, for their part, held near 619,500 barrels per day.
The logistical difference is key: the United Arab Emirates and Saudi Arabia have export routes that bypass the Strait of Hormuz. By contrast, Kuwait, Iraq, Qatar, and Bahrain depend more heavily on that sea lane for their oil shipments.
Total purchases remain stable
Overall, India imported 4.57 million barrels per day in April, a level similar to March but 15.5% lower than the same period a year earlier. OPEC producers’ share of India’s imports rose to 45.2% in April, from about 30% in March, driven by higher purchases from Gulf suppliers with less exposed routes.
Finally, the reshuffling of India’s oil imports reflects a diversification strategy in the face of a route critical to global energy trade. With Russia still in the lead, the United Arab Emirates and Saudi Arabia as regional backstops, and Latin America gaining weight, Indian refineries are seeking to keep crude flowing while the market closely watches any new disruption in Hormuz.
Source: Reuters
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