India Increases Russian And UAE Oil Imports As Strait Of Hormuz Reopens

India significantly increased its imports of Russian crude oil in June while maintaining near-record purchases from the United Arab Emirates (UAE) , as refiners moved to secure supplies amid uncertainty surrounding the reopening of the Strait of Hormuz , according to data and analysis from maritime intelligence firm Kpler.

Data available through June 19 showed that India imported an average of 2.66 million barrels per day (bpd) of crude oil from Russia during the month, up sharply from 1.91 million bpd in May. The increase further strengthened Russia's position as India's largest crude supplier.

Imports from the UAE remained elevated at 636,000 bpd , only slightly below the record 644,000 bpd registered in May. Meanwhile, Venezuela emerged as India's fourth-largest crude supplier , with shipments averaging 209,000 bpd , behind Saudi Arabia, which supplied around 384,000 bpd .

In contrast, imports from the United States declined substantially to 91,000 bpd in June from 252,000 bpd the previous month.

The shift in sourcing patterns reflects India's efforts to diversify its energy imports while managing supply risks linked to developments in the Gulf region. India, the world's third-largest energy importer, relies heavily on overseas supplies, importing around 88 per cent of its crude oil requirements , nearly half of its natural gas needs and about 65 per cent of its liquefied petroleum gas (LPG) consumption.

The Gulf region has traditionally played a dominant role in meeting these requirements. Before the recent disruptions, Gulf producers supplied nearly half of India's crude oil imports, around two-thirds of its liquefied natural gas (LNG) requirements and almost 90 per cent of its LPG imports.

Energy markets faced significant uncertainty after disruptions to shipping through the Strait of Hormuz, a strategically important waterway that handles roughly 20 per cent of global oil consumption and serves as a major export route for oil-producing countries including Saudi Arabia, Iraq, Kuwait, the UAE and Qatar.

According to Sumit Ritolia , Senior Manager – Modelling at Kpler, the reopening of the Strait of Hormuz is expected to bring varying degrees of relief across different energy commodities. He noted that LPG supplies are likely to recover the fastest , while crude oil and LNG imports may normalise more gradually because India has already adapted to supply disruptions through diversification and alternative sourcing arrangements.

Ritolia said the initial phase of reopening would likely focus on clearing delayed cargoes and restoring shipping movements before Gulf producers substantially increase export volumes. As a result, LPG flows are expected to stabilise first, followed by LNG and crude oil supplies.

Despite improving conditions in the Gulf, Russian crude is expected to remain a cornerstone of India's import strategy. Kpler estimates that Russian oil imports could exceed 2.35 million bpd in June, potentially reaching record levels. Competitive pricing and consistent refinery demand continue to make Russian supplies attractive for Indian refiners.

India has also expanded purchases from alternative suppliers including Venezuela and countries in the Atlantic Basin since March to reduce dependence on Gulf supplies. Venezuelan crude imports are estimated to reach between 300,000 and 400,000 bpd in June, providing refiners with additional options, particularly for processing heavier grades of crude.

The recent disruption also accelerated India's efforts to diversify LPG and LNG sourcing. The United States has emerged as an increasingly important LPG supplier following supply constraints from the Gulf, although longer shipping distances have resulted in higher freight costs.

Analysts expect Gulf exporters to gradually regain market share as shipping through the Strait of Hormuz returns to normal. However, India's energy import basket is likely to remain more diversified than before the crisis. The reopening of the vital shipping route is also expected to ease transportation costs, reduce supply risks and help stabilise global energy markets, although a complete return to pre-disruption trade patterns may take several weeks or months.