India has bought about 30 million barrels of unsold Russian crude after the United States issued a 30-day waiver allowing the country to buy shipments already stranded at sea, Bloomberg reported, citing sources.According to the report, Indian refiners moved quickly to secure available cargo, many of which were already deployed in Asian waters, offering immediate alternatives due to disruptions to oil flows from the Middle East.
India had earlier reduced purchases of Russian oil and replaced some of that supply with crude from Saudi Arabia and Iraq. While New Delhi has never officially said it will stop buying Russian oil, large quantities of oil continue to flow. However overall import levels had declined in recent months.The escalating conflict in the Middle East has disrupted traditional supply routes, with shipping traffic through the Strait of Hormuz severely affected following the American and Israeli attacks on Iran.Although the Strait of Hormuz is one of the world’s most important oil shipping routes, about 40% of India’s crude passes through the waterway. Nevertheless, the disruption has prompted Indian refiners to secure alternative crude supplies to maintain steady energy flows.
Indian refiners move quickly to secure cargo
After the discount, Indian refiners including Indian Oil Corporation and Reliance Industries bought almost all available Russian cargoes in the spot market, according to sources cited by Bloomberg.Most of the crude was already loaded onto tankers and headed through Asian waters but not yet committed to buyers.Traders said Indian Oil bought about 10 million barrels, while Reliance bought at least 10 million, with other Indian refiners taking the remaining quantity. Russian crude oil offerings included several grades such as Urals, ESPO and Varandey. The prices were offered at a premium of $2 to $8 a barrel over London’s Dated Brent benchmark, a sharp change from earlier months when Russian oil traded at a discount to the global marker.The buying surge comes amid major disruptions to global energy supplies due to the escalating conflict in the Middle East. The Strait of Hormuz, which links Gulf oil producers to global markets, has been effectively closed since the US and Israeli attacks on Iran began, limiting access to Middle Eastern crude.The disruption has forced importers like India to quickly secure alternative supplies.
Tankers changed direction towards India
Many oil tankers that were initially moving away from the subcontinent have turned to India after the relaxations.According to shipping data cited by Bloomberg, among them are the ships Mylo and Sara, which recently changed their destination from Singapore and are now headed to Indian ports.India traditionally imported little Russian oil before the Russian invasion of Ukraine, but purchases increased after Western sanctions forced Moscow to offer crude at deep discounts.At its peak in mid-2024, India’s Russian oil imports exceeded 2 million barrels per day. However, purchases dropped to about 1.06 million barrels per day in February, according to data from analytics firm Kpler, as India cut back under pressure from Washington.
US says waiver is temporary
The United States has previously described the waiver as a temporary measure aimed at stabilizing global energy markets during the ongoing Middle East crisis.White House press secretary Carolyn Leavitt said the move was intended to address short-term supply disruptions.Responding to a question about the waivers, Levitt said, “They came to this decision because our allies in India have been good actors and have stopped buying previously sanctioned Russian oil.” He said, “So as we are working to calm this temporary gap in oil supply around the world caused by the Iranians, we have temporarily allowed them to acknowledge that Russian oil and this Russian oil was already in the ocean.”He said the shipment would not increase Russia’s revenue, adding, “It was already in the water. So this short-term measure, we do not believe it will provide significant financial benefits to the Russian government at this time.”
