Russia is ready to divert oil to India to offset Middle East supply disruptions, with about 9.5 million barrels of Russian crude in vessels near Indian waters and able to arrive within weeks, an industry source with direct knowledge told Reuters.
The source declined to say where the non‑Russian fleet cargoes were originally headed but said they could deliver to India within weeks, giving refiners rapid relief.
India is vulnerable to supply shocks, with crude stocks covering only about 25 days of demand, while refiners hold similarly limited inventories of gasoil, gasoline and liquefied petroleum gas.
A government source said New Delhi was scouting for alternative supply to prepare for continuing conflict in the Middle East beyond 10-15 days.
Forced To Seek Alternative Supply
The disruption has immediate market consequences, with about 40 per cent of India's crude imports moving through the Strait of Hormuz, the world's most vital oil export route, the source said, and the near-closure of the route has compelled the No.3 oil consumer to seek alternatives.
Refiners process about 5.6 million barrels per day of crude. The Strait has become inaccessible after vessels were struck by Iranian attacks that followed US and Israeli strikes on Iran-based targets that commenced on Saturday.
The industry source, speaking on condition of anonymity, said Russia was ready to help India meet up to 40% of its crude needs.
India's imports of Russian crude fell to about 1.1 million barrels per day in January, the lowest since November 2022, as New Delhi sought relief from US tariffs, pushing Moscow's share of overall oil imports down to 21.2%, industry data showed. The source said the share climbed back to around 30% in February.
Indian refiners are in regular contact with traders selling Russian crude, but any increase in intake from Moscow would depend on guidance from the government as trade talks with the United States continue, two refining sources said.
US President Donald Trump last month agreed to drop punitive tariffs levied on imports from India over its purchase of Russian oil, saying New Delhi had agreed to "stop buying Russian oil."
India has not done so, insisting its strategy was to diversify supply in line with market conditions and "evolving international dynamics."
India's foreign and oil ministries, as well as the Russian embassy in New Delhi, did not immediately respond to a request for comment on any higher purchases from Russia. An Indian source said days before the Iran war that Indian companies had not been told to shun Russian oil.
'A Seller's Market' For Oil
While Russian oil has been sold at a discount to global prices since the country invaded Ukraine in 2022, that will now narrow as "it's become a sellers' market," the industry source with knowledge of Russian oil trade said.
The source said Russia was also ready to sell liquefied natural gas to India after top supplier Qatar halted production on Monday as the conflict widened.
Indian companies have reduced gas supplies to some industrial customers to manage the shortfall, Reuters has reported.
Both China and India, Asia's biggest energy consumers, source about half their crude imports from the Middle East, but India holds far less in storage than China and is more exposed to regional supply shocks as Russian purchases fell under U.S. pressure.
Trump said on Tuesday the US Navy could escort oil tankers through the Strait of Hormuz if necessary, and ordered the U.S. International Development Finance Corporation to provide political risk insurance and guarantees for Gulf shipping.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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