India's Russian Crude Imports Surge In June As Refiners Secure Supplies

New Delhi, Jun 22 (KNN) India's crude oil imports from Russia surged in June, while purchases from the United Arab Emirates remained near record levels, as refiners moved to secure supplies ahead of the gradual normalisation of energy flows through the Strait of Hormuz, according to data from maritime intelligence firm Kpler.
 
Imports from Various Sources
 
India's crude imports from Russia surged in June, reinforcing Moscow's position as the country's top oil supplier. According to Kpler data, India imported an average of 2.66 million barrels per day (bpd) of Russian crude through June 19, up from 1.91 million bpd in May, reported PTI. 
 
UAE supplies remained near record levels at 636,000 bpd, while Venezuela emerged as the fourth-largest supplier with 209,000 bpd, behind Saudi Arabia's 384,000 bpd. In contrast, imports from the United States fell sharply to 91,000 bpd from 252,000 bpd in May. 
 
Diversification Strategy Shapes Import Patterns
 
The shift reflects India's strategy of diversifying energy sources, with discounted Russian crude remaining attractive and higher UAE purchases helping mitigate uncertainty over Strait of Hormuz shipments. 
 
As the world's third-largest energy importer, India relies on overseas supplies for about 88 percent of its crude oil needs, nearly half of its natural gas demand and around 65 percent of LPG consumption.
 
Strait of Hormuz Disruptions Impact Global Energy Flows
 
The Strait of Hormuz, a key route handling nearly 20 percent of global oil consumption, faced disruptions after Iran closed the waterway amid tensions involving the US and Israel. 
Although shipments have begun recovering following a US-Iran ceasefire, analysts caution that the truce remains fragile, leaving uncertainty over the route's sustained reopening. 
 
LPG Supplies Likely To Recover First
 
According to Sumit Ritolia, Senior Manager- Modelling, Kpler, the reopening of the Strait of Hormuz is expected to provide the quickest relief to India's LPG supplies, while crude oil and LNG imports are likely to normalise more gradually. 
 
He noted that diversified sourcing and alternative routes helped India withstand disruptions, making crude and LNG imports more resilient than LPG.
 
Clearing Backlogs Before Export Volumes Rise
Ritolia said the initial reopening phase would prioritise clearing stranded cargoes and restoring shipping flows before Gulf producers can significantly raise exports. 
 
He added that Russian crude is likely to remain central to India's import mix due to its competitive pricing and reliability, with June imports projected to exceed 2.35 million bpd and potentially reach record levels amid steady refinery demand.
 
Venezuela and Atlantic Basin Emerge as Alternatives
 
Indian refiners have also stepped up purchases from the Atlantic Basin and Venezuela since March to offset tighter Gulf supplies. Venezuelan imports are estimated at 300,000–400,000 bpd in June, offering an alternative source of heavier crude despite sanctions-related risks. 
 
Meanwhile, the US has emerged as a key LPG supplier following reduced Gulf shipments, although longer shipping distances have increased freight costs. 
 
Broader Energy Sourcing Likely To Continue
 
Analysts expect Gulf suppliers to gradually regain market share as conditions stabilise, though India's energy sourcing is likely to remain more diversified than before the crisis. 
 
The reopening of the Strait of Hormuz should ease freight costs, reduce supply risks and moderate global energy prices, but a full return to pre-crisis trade patterns may take weeks or months as confidence among shippers, insurers and traders rebuilds.
 
(KNN Bureau)