Indian refiners increased crude imports from Africa and Latin America after supplies from the Middle East were disrupted by the Israeli-U.S. conflict with Iran, which restricted shipping through the Strait of Hormuz.
Before the conflict escalated at the end of February, India — the world’s third-largest oil importer and consumer — relied heavily on crude supplies from the Middle East. However, refiners have since diversified purchases, increasing imports from Venezuela, Brazil, Angola and Nigeria during April and May to offset supply shortages, while continuing to buy Russian oil, Reuters reported.
Africa gains stronger role in supply mix
The shift toward African crude had already started earlier this year as Indian refiners sought to reduce reliance on Russian supplies amid geopolitical uncertainty. In April, Nigeria shipped its first-ever cargo of Cawthorne crude, a 950,000-barrel consignment bound for India’s Sikka port, highlighting Africa’s growing role in India’s energy diversification strategy.
At the same time, Indian Oil Corporation (IOC) secured roughly six million barrels of crude from West African and Middle Eastern producers for April delivery as refiners moved to strengthen supply security and broaden sourcing options.
Last month, India halted purchases from Iraq after exports were disrupted. At the same time, Indian refiners resumed imports of Iranian crude for the first time in seven years following a temporary waiver granted by Washington to help stabilise global oil prices.
Imports from Russia also declined sharply in March, falling about 29.4% to 1.6 million barrels per day after Nayara Energy shut its 400,000-barrel-per-day refinery for maintenance. Preliminary Kpler data, however, show Russian supplies rebounding to around 1.9 million barrels per day in May, while Iraqi imports are expected to resume at roughly 41,000 barrels per day.
India imported a total of 4.57 million barrels per day of crude in April, unchanged from March but down 15.5% compared to the same period last year.
ADVERTISEMENT
Imports from the United Arab Emirates rose sharply in April to about 669,700 barrels per day from 230,600 barrels per day in March, while Saudi Arabian supplies remained stable at around 619,500 barrels per day.
The UAE and Saudi Arabia have become particularly important because they are the only Gulf producers with pipeline infrastructure that can bypass the Strait of Hormuz. Other producers, including Iraq, Kuwait, Qatar and Bahrain, remain heavily dependent on the waterway for exports.
Russia remained India’s largest oil supplier, followed by the UAE and Saudi Arabia. Brazil ranked fourth, while Venezuela is expected to become India’s fourth-largest supplier in May as Indian refiners continue shifting toward alternative crude sources.