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India Navigates Shifting Oil Routes Amid Global Tensions
25 May
Summary
- India boosted oil imports from Venezuela, Brazil, Angola, and Nigeria.
- Refiners received Iranian oil after a seven-year gap due to a US waiver.
- Middle East's share in India's imports rose to 45.2% in April.
Indian refiners have significantly altered their crude oil sourcing strategies following disruptions to traditional Middle Eastern supplies. Amidst global tensions, particularly affecting shipping routes like the Strait of Hormuz, India has increased its reliance on oil imports from Latin America and Africa. In April and May, refiners boosted purchases from Venezuela, Brazil, Angola, and Nigeria to compensate for reduced Middle Eastern flows.
This period also marked India's re-engagement with Iranian oil after a seven-year hiatus, thanks to a temporary waiver granted by Washington. While Russian oil imports saw a reduction in March due to refinery maintenance, they were expected to rebound in May. Overall oil imports in April remained steady compared to March but decreased year-on-year. Imports from the UAE and Saudi Arabia showed a notable increase, helping to offset declines from other Gulf producers.
