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India's oil import - June 2025
June 28 , 2025
13 hrs 0 min
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- India has ramped up purchases of Russian oil in June.
- It is importing more than the combined volumes from Middle Eastern suppliers such as Saudi Arabia and Iraq.
- Indian refiners are likely to import 2-2.2 million barrels per day of Russian crude oil in June.
- It was the highest in the last two years and more than the total volumes bought from Iraq, Saudi Arabia, the UAE and Kuwait.
- India's oil imports from Russia were 1.96 million barrels per day (bpd) in May 2025.
- Imports from the United States also rose to 439,000 bpd in June, a big jump from 280,000 bpd purchased in the previous month.
- The Full-month projections for imports from the Middle East stand at around 2 million bpd, lower than the previous month's buying.
- India is the world's third-largest oil-importing and consuming nation.
- It bought from abroad around 5.1 million barrels of crude oil.
- India has traditionally sourced its oil from the Middle East.
- It began importing a large volume of oil from Russia soon after the invasion of Ukraine in February 2022.
- Russian oil (Urals, ESPO, Sokol) is logistically detached from Hormuz, flowing via the Suez Canal, Cape of Good Hope, or Pacific Ocean.
- This was primarily because Russian oil was available at a significant discount to other international benchmarks due to Western sanctions and some European countries shunning purchases.
- This led to India's imports of Russian oil seeing a dramatic rise, growing from less than 1 per cent of its total crude oil imports to a staggering 40-44 per cent in a short period.
- The Strait of Hormuz lies between Iran to the north and Oman and the United Arab Emirates to the south.
- It serves as the main route for oil exports from Saudi Arabia, Iran, Iraq, Kuwait, and the UAE.
- Many liquefied natural gas (LNG) shipments, especially from Qatar, also pass through the strait.
- The Strait of Hormuz is a route for a fifth of the world's oil and a major LNG export transit.
- India imports about 40% of all its oil and about half of its gas through the narrow Strait.
- China, Iran's largest oil customer (which imports 47 per cent of its seaborne crude from the Middle East Gulf), would be directly impacted by the blockade of Hormuz.
- Also, Iran's reliance on Hormuz for oil exports via Kharg Island (handles 96 per cent of its exports) makes self-blockade counterproductive.
- Saudi Arabia and the UAE, also rely heavily on the Strait for exports.
- At the end, India may also pivot harder toward the US, Nigeria, Angola, and Brazil, albeit at higher freight costs.
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