India Diversifies Crude Imports Amid Strait of Hormuz Disruptions

SEATTLE (Oil Monster): India has significantly diversified its crude oil sourcing, increasing imports from Latin America and Africa following disruption of supplies from the Middle East after Middle East on account of shipping restrictions in the Strait of Hormuz.

According to trade data, Indian refiners boosted crude purchases from Venezuela, Brazil, Angola, and Nigeria during April and May to offset supply shortfalls, while maintaining strong imports of Russian oil. However, Iraq's exports were halted last month. In the meantime, Iranian oil shipments resumed after a seven-year gap under a temporary U.S. waiver.

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India’s overall crude imports in April stood at 4.57 million barrels per day, more or less flat from March but down 15.5% year-on-year. Russian crude imports fell 29.4% to 1.6 million bpd due to refinery maintenance at Nayara Energy. The imports are expected to rebound to 1.9 million bpd in May.

Imports from the UAE recovered sharply to 669,700 bpd, while Saudi volumes held near 619,500 bpd.

Russia remained India’s largest supplier, followed by the UAE and Saudi Arabia, while Venezuela is expected to emerge as one among the top four suppliers as the country further diversifies crude sourcing.