India oil imports: Russia, UAE surge amid Hormuz disruption

Why the import shift matters

India’s crude sourcing changed sharply as shipping uncertainty around the Strait of Hormuz pushed refiners to protect supply continuity. With the United States and Iran moving toward an interim peace agreement and markets waiting for full restoration of transit through the chokepoint, Indian buyers leaned harder on barrels that were less exposed to Hormuz-linked risks. The result was a visible jump in Russian crude intake, alongside near-record flows from the United Arab Emirates.

The shift matters because India is the world’s third-largest crude oil importer and remains structurally dependent on imported hydrocarbons. The Strait of Hormuz sits on the critical route for many Middle Eastern flows into Asia. Even temporary restrictions can tighten availability, raise delivered costs, and force rapid changes in procurement and refinery planning.

What Kpler data shows for early June

Maritime and commodity intelligence firm Kpler estimated that India imported an average of 2.66 million barrels per day (bpd) of crude from Russia between June 1 and June 19, up from 1.91 million bpd in May. The increase further reinforced Russia’s position as India’s largest crude supplier during the disruption.

Imports from the UAE averaged 636,000 bpd in the same June period, only slightly below the record 644,000 bpd seen in May. Saudi Arabia remained the third-largest supplier in the June 1 to June 19 window at 384,000 bpd, while Venezuela was the fourth-largest source at 209,000 bpd.

Snapshot of key supplier volumes

Strait of Hormuz disruption and the supply-risk problem

The procurement changes were linked to uncertainty around energy flows through the Strait of Hormuz, described as one of the world’s most important energy chokepoints. The article notes that Iran began restricting passage through the strait in early March. It also states that only a limited number of tankers were departing each week, with most not destined for India.

The price impact highlighted in the text underscores the sensitivity: India’s crude basket “surged from $19 to over $114 per barrel in April.” That jump is presented as a reminder of how exposed a large importer can be to a single maritime route.

Why Russian crude gained share during the disruption

The article attributes Russia’s increased role to two practical factors: discounted pricing and route diversification. Russian barrels continued to attract buyers due to discounts, and shipments can move via Baltic, Black Sea, and Pacific routes that do not depend on passage through the Strait of Hormuz.

An analyst, Ritolia, is cited as expecting Russian crude to remain central to India’s energy strategy even as conditions improve. Separately, the article also states that June imports were projected to surpass 2.35 million bpd, with a possibility of reaching a new record, supported by discounts and steady refinery demand.

Why the UAE stayed near record levels

While Russia led in volume, the UAE’s role appears tied to supply security during a period of uncertainty. The text notes that higher UAE volumes helped strengthen supply security and mitigate the decline in the Middle East share of India’s total oil imports.

Another point raised is that the UAE and Saudi Arabia were described as the only Middle Eastern producers exporting crude from ports outside the Persian Gulf without routing through the Strait of Hormuz. That logistical flexibility helps explain why UAE flows held up close to record levels even as the region faced disruption.

Venezuela and Atlantic Basin barrels enter the mix

Indian refiners also expanded purchases from Venezuela and other Atlantic Basin producers since March as part of a broader diversification strategy. For June, Venezuelan imports are estimated at 300,000 to 400,000 bpd, offering an alternative for refiners that process heavier crude grades.

The article also references a separate Kpler-tracked trend where Venezuela supplied around 417,000 bpd to India in May, up from 283,000 bpd in April, and compared with zero supplies in the previous nine months. It adds that Brazil and Venezuela entered the top five suppliers in April as the crisis reshaped sourcing priorities.

LPG took the biggest hit, while crude and LNG were steadier

A key distinction in the article is between crude, LNG, and LPG during the disruption. Ritolia is quoted saying crude and LNG imports were “relatively resilient,” unlike LPG, which was “the most severely affected.” The stated reason is LPG’s heavier dependence on Gulf producers.

The article also notes that the United States emerged as a key LPG supplier after disruptions limited shipments, supported by a longer-term supply arrangement established last year. On LNG, buyers reportedly sourced incremental cargoes from countries including Oman, Nigeria, and the US.

Sanctions, waivers, and the policy backdrop

The text links sourcing choices to sanctions constraints and temporary relief measures. It states that expanded US sanctions on Russian producers, including a November 2025 designation of Rosneft and Lukoil, limited India’s ability to import Russian crude. It also says Russian oil’s share of India’s crude imports dropped to under 20% in January 2026.

At the same time, the article notes that the US Treasury issued short-term sanctions waivers for purchasing Iranian and Russian oil already on the water. It also states India temporarily rerouted roughly 70% of crude imports away from the Strait of Hormuz, up from 55%, primarily by absorbing sanctioned Russian crude enabled by the waivers.

Market impact and why refiners tweaked operations

The immediate market effect described is not limited to sourcing changes. The text says refiners adapted by processing a wider mix of crude grades and tweaking operations to boost fuel output and improve resilience.

For investors and industry watchers, the key takeaway is the speed of procurement and operational adjustment. Volumes show that Russian and UAE barrels acted as stabilisers during the disruption, while Venezuela and other Atlantic Basin suppliers provided additional flexibility for heavier crude requirements, even as the article flags risks such as sanctions and production limits clouding longer-term outlooks.

Conclusion

India’s higher Russian imports and near-record UAE buying during the Strait of Hormuz disruption reflect a clear push to reduce chokepoint exposure and keep refineries well supplied. The article indicates that diversification has broadened to include Venezuela, Brazil, and West African sources, while LPG faced the sharpest shock.

As markets await fuller restoration of shipping through Hormuz and the US-Iran interim agreement process continues, the next data points will be whether elevated Russian volumes persist and how quickly Gulf-linked LPG flows normalise.