Russia, Sep 17 : India’s state owned refiners are confronting increasing uncertainty over crude supplies as prolonged disruptions in the Middle East coincide with tighter scrutiny of Russian oil purchases. Industry sources familiar with the trade said the situation is making procurement decisions for the coming months more difficult. The Economic Times
Oil flows through the Strait of Hormuz have remained disrupted amid the wider Middle East conflict. Saudi Arabia has also faced interruptions after attacks damaged its East-West pipeline, a key route designed to move crude toward the Red Sea and bypass the Strait. The disruption has added pressure to an already tight regional supply market. The Economic Times
While Saudi Arabia is working to restore affected infrastructure and normalize shipments, Russian crude is presenting a separate challenge. Indian refiners have traditionally relied on Russian barrels because of their competitive pricing, but supplies have become more difficult to secure as availability tightens and competition for alternative cargoes increases. India’s Russian crude imports were estimated at about 1.42 million barrels per day during the first half of September, down around 30% from the August average, according to Kpler data reported by ThePrint. The Print
The situation could become more complicated if additional US measures increase the risks or costs associated with purchasing Russian oil. Indian state refiners have reportedly secured their requirements for September and October, but procurement decisions for November and beyond are becoming more challenging, according to people familiar with the discussions. The Economic Times
India has been expanding its crude sourcing network to reduce dependence on individual suppliers and shipping routes. Refiners are turning to countries including Iraq, the United States, Brazil, Canada, Venezuela and producers in Africa to supplement Russian and Middle Eastern supplies. Iraq, in particular, has emerged as an important alternative as Russian volumes have declined. The Print
However, diversification is likely to come with higher costs. Oil markets are facing pressure from disruptions across several major routes, while freight and insurance expenses have also risen. Recent market reports indicate that Asian refiners are competing for alternative crude grades as supplies from the Gulf face logistical constraints. Reuters
The pressure comes at a time when India’s crude inventories are also being closely watched. Refiners need sufficient stocks to maintain operations while navigating uncertain international supply conditions and elevated crude prices.
Domestic refining capacity is simultaneously expanding. A new refinery in Rajasthan is ramping up operations, while Indian Oil Corporation is increasing capacity at existing facilities. The additional processing capacity will raise India’s requirement for reliable crude supplies, potentially intensifying competition for available cargoes.
For Indian refiners, the challenge is therefore not simply securing enough crude but balancing supply security with cost. With Russian availability under pressure and Middle Eastern shipping routes facing disruption, refiners are increasingly required to diversify their purchases while managing the impact of higher crude and transportation costs.