India's Russian oil imports at record high, set to remain core of crude diet, Pg3

Key Highlights:

• India's crude oil imports from Russia are projected to reach an all-time high in June, averaging 2.6 million barrels per day (bpd) so far.
• Russian oil constitutes approximately 53.5% of India's total crude imports for the period, according to data from Kpler.
• This surge is primarily driven by supply disruptions in West Asia, particularly around the Strait of Hormuz, and continued competitive pricing of Russian crude.
• The US sanctions waiver on Russian oil purchases has lapsed, but industry experts anticipate India's imports to remain robust.

Detailed Insights:

• The expected full-month import figure for Russian oil in June is over 2.35 million bpd, surpassing the previous record of 2.2 million bpd set in May 2023.
• India's crude import strategy has significantly shifted since March 2026 due to increased freight risks and tightened West Asian oil flows caused by Strait of Hormuz disruptions.
• About 40% of India's crude imports typically pass through the Strait of Hormuz, a critical maritime chokepoint.
• Indian refiners have also diversified their crude sources to include North American and Venezuelan barrels to compensate for reduced supplies from the Gulf region.
• Despite an interim pact between the US and Iran and the lapse of the US waiver, the economics and supply security continue to favor Russian and non-Strait of Hormuz barrels for India.

Key Concepts Involved:

• Strait of Hormuz: A narrow, strategically vital waterway connecting the Persian Gulf with the Gulf of Oman, crucial for global oil transit.
• Sanctions Waiver: A temporary exemption granted by a sanctioning authority, allowing certain transactions that would otherwise be prohibited.
• Crude Oil Benchmarks: Reference prices used in the oil market to value different types of crude oil, influencing global trade and pricing.
• Kpler: A commodity market analytics firm that provides real-time data and insights on global commodity trade movements.