India’s Russian Oil Imports Spiked Sharply In March

India ramped up crude purchases from Russia in March, even as its overall oil imports slipped. The country bought Russian crude worth about €5.3 billion, roughly $6.2 billion, compared with €1.4 billion in February. The jump came alongside supply disruptions in West Asia following the closure of the Strait of Hormuz.

Fresh estimates from the Centre for Research on Energy and Clean Air (CREA) put total Russian hydrocarbon imports at €5.8 billion for the month. That placed India just behind China among top buyers. Crude dominated the basket at 91%, with coal and oil products accounting for the rest. This happened even as India’s total crude imports declined by 4% in March.

Why Did India Increase Russian Oil Purchases?

State-run refiners accounted for much of the spike. Their intake of Russian crude rose 148% over February levels. Compared with March last year, volumes were 72% higher. The CREA observed that there were more barrels of Russian oil available in the spot market, which would probably lead to increased buying.

Additionally, the private refiners also increased their purchasing activity, but their progress was slower compared to others. They showed an increase of more than 66% on a month-to-month basis.

Pricing moved at the same time. Russian Urals crude, which had earlier traded at a discount, became costlier as global supply tightened. The disruption around Hormuz pushed up crude benchmarks, narrowing earlier discounts but not fully removing the cost advantage.

What Role Did Global Developments Play?

The closure of Hormuz disrupted one of the busiest oil shipping routes in the world. This tightened supply and increased uncertainty in the market, forcing refiners to look for available cargoes.

Meanwhile, the US sanctioned a waiver of one month related to Russia’s energy business, providing temporary relief to India's energy concerns.

The March increase follows a softer trend earlier in the year. Imports from Russia had dipped in January and February. In February, India ranked third among buyers of Russian hydrocarbons after China and Turkey, with purchases worth €1.8 billion. Crude accounted for about €1.4 billion, or nearly 81% of that figure.

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What Does This Signal For India’s Oil Strategy?

The latest data shows how quickly import patterns can shift when supply conditions change. Even with a fall in total crude imports, refiners increased Russian purchases when availability improved.

India has relied on Russian oil for a significant share of its imports over the past four years. March adds another instance where volumes picked up after a short decline, suggesting that refiners continue to respond to price and supply signals rather than stick to fixed sourcing patterns.

What happens next will depend on how long current disruptions last. If shipping routes stabilise or sanctions tighten again, the flow of Russian crude into India could change just as quickly.

Sources:

The Times of India

MSN