India buys 30 million barrels of Russian oil after US waiver

Indian refiners have purchased about 30 million barrels of Russian crude after the United States granted a waiver allowing such transactions to help India address a shortage of Middle Eastern supplies.

India had been reducing purchases of Russian oil since last year amid pressure from Washington, replacing them with supplies from Saudi Arabia and Iraq.

However, the escalating conflict in West Asia has disrupted supply routes, with the Strait of Hormuz effectively closed since US and Israeli strikes on Iran began.

Following the US waiver issued late last week, Indian refiners, including Indian Oil Corp. and Reliance Industries, bought available cargoes of Russian crude in the spot market. The oil had already been loaded onto vessels but had not yet been committed to buyers, with much of it located in Asian waters.

Around 10 million barrels were purchased by state-owned Indian Oil, while Reliance acquired at least a similar amount, according to traders. Russian crude grades involved in the deals include Urals, ESPO, and Varandey.

The cargoes were offered at premiums ranging from 2 dollars to 8 dollars per barrel above London’s Dated Brent benchmark. Before the conflict in West Asia, Russian crude was typically sold at a discount to the same benchmark.

The US waiver applies to transactions involving Russian crude oil and petroleum products that were loaded onto ships before March 5, provided they are delivered to India and purchased by Indian companies.

Shipping data also showed tankers changing course toward India after the waiver. Vessels, including the Maylo and the Sarah, turned around after initially signalling Singapore as their destination.

India significantly increased purchases of Russian oil after the invasion of Ukraine in 2022. Imports later peaked at more than 2 million barrels per day in mid 2024 before falling to about 1.06 million barrels per day in February, according to data from Kpler.