Indian Refiners Tap Floating Russian Oil Amid Supply Gaps

Refiners in India have begun tapping into crude oil from Russia currently floating offshore to compensate for a reduction in Middle Eastern imports caused by the ongoing conflict in Iran. This move highlights the energy vulnerability of the South Asian nation, where crude stockpiles are estimated to cover only about 25 days of domestic demand. While the country became a major buyer of seaborne crude from Moscow following the 2022 invasion of Ukraine, it had scaled back purchases in January to avoid a 25% tariff imposed by the United States and to facilitate an interim trade agreement. Recent activity indicates a swift return to these supplies. The Suezmax tanker Odune, carrying roughly one million barrels of oil, recently berthed at the Paradip port for delivery to the state-run Indian Oil Corporation Limited. Another vessel, the Spring Fortune, is scheduled to deliver 700,000 barrels to the Vadinar port. Industry sources report that approximately 9.5 million barrels of crude are currently idling near the coast and could be delivered within weeks. > "Should Middle Eastern inflows tighten, Indian refiners could pivot back toward Russian grades relatively quickly," said Sumit Ritolia, an analyst at ship-tracking firm Kpler. Data from Kpler suggests that nearly 30 million barrels of oil are currently available on vessels across the Indian Ocean, the Arabian Sea, and the Singapore Strait. If these stocks are not claimed by local refiners, they are expected to be redirected to China within a matter of days. > "If Indian refiners wont act, all these can start moving to China in a day or two," Ritolia said.