Gulf nations overtake Russia as India's top crude supplier

New Delhi: India imported more crude oil from Gulf countries than from Russia in early November, the first such shift since the Iran war disrupted supplies through the Strait of Hormuz.

India is estimated to have received around 2.1 million barrels per day (bpd) from Persian Gulf producers so far this month, compared with 1.8 million bpd from Russia, Bloomberg reported on Thursday, citing data from the analytics firm Kpler.

The reversal signals a recovery in oil movements through Hormuz, which had been severely disrupted by the conflict. Ship-to-ship (STS) transfers, increasingly conducted closer to India’s coastline, have helped maintain Gulf exports despite congestion in the Gulf of Oman and fears of attacks on tankers near the strait.

Before the war, India imported an average of about 2.8 million bpd through Hormuz. Those flows plunged to around 247,000 bpd in April, when the waterway was closed to almost all traffic.

The rebound has boosted the appeal of Middle Eastern crude, aided by shorter shipping distances to India. Russia remains a major supplier, but higher freight costs and premiums have weakened the competitiveness of its oil for Indian refiners.

STS operations expanded towards India’s west coast last month as vessels crowded waters outside Hormuz. The Gulf of Kutch has also emerged as a transfer point, helping Gulf exporters maintain supplies to Asian markets while limiting tanker exposure to risks near the strait.

At the end of October, state-run refiner Bharat Petroleum Corporation Limited said it would reduce Russian crude purchases in November, citing higher costs and more competitive offers from Middle Eastern suppliers.