India’s crude oil imports from Russia surged to a record 2.8 million barrels per day in July 2026, accounting for 55.5% of total purchases, while Gulf suppliers such as Saudi Arabia, Iraq, and Kuwait returned strongly as Strait of Hormuz flows normalised, Times of India
reported.
Discounts on Russian Urals crude have nearly vanished, yet Moscow remains India’s most reliable supplier amid ongoing geopolitical volatility.
India’s crude oil imports in July reached slightly above 5 million barrels per day, marginally higher than June. Russia supplied 2.8 mbd, up from 2.7 mbd in June, cementing its share at 55.5%.
This marks the highest level since India began importing discounted Russian crude following the Ukraine war in 2022.
Analysts noted that Russian supplies remain dependable despite evolving geopolitical risks. Earlier disruptions around the Strait of Hormuz and now concerns around the Bab el-Mandeb Strait have underscored Russia’s reliability.
Drone strikes on Russian refining infrastructure have reduced domestic refining activity, leaving more crude available for export. However, refiners reported that discounts on Russian Urals crude have almost disappeared, narrowing to parity with Brent in recent weeks.
India’s LPG imports in July were heavily skewed towards the United States, which supplied over 900,000 tonnes, representing 73% of the total 1.2 million tonnes imported.
This highlights the continuing reliance on US energy flows for LPG even as crude imports are dominated by Russia.
The July data also show Indian refiners restoring purchases from West Asian suppliers after Persian Gulf disruptions. Saudi Arabia recorded the largest increase, with exports rising to 420,000 barrels per day from 290,000 bd in June.
Iraq’s imports nearly doubled to 130,000 bd from 67,100 bd in June, marking the third consecutive monthly increase since supplies resumed in May after falling to zero in April. Kuwait returned to India’s import basket with 51,600 bd after three months of absence.
The return of Iraqi and Kuwaiti crude, alongside higher Saudi volumes, indicates that flows through the Strait of Hormuz have largely normalised. This has allowed Indian refiners to diversify their sourcing once again, balancing Russian dominance with Gulf supplies. Imports from the UAE declined to 460,000 bd in July from 510,000 bd in June, though it remained India’s second-largest source of crude.
Additional analysis shows that India’s overall crude basket has shifted dramatically in 2026. Russian inflows have more than doubled from January’s 23.4% share to over 55% in July.
This transformation reflects both Moscow’s aggressive export strategy and India’s pragmatic approach to securing energy amid regional instability. Urals crude, once available at discounts of $8–10 per barrel, is now offered at only $2–3 below Brent, eroding the cost advantage but maintaining supply security.
India’s refiners continue to hedge against volatility by maintaining diversified imports from Latin America and Africa. Venezuela supplied 231,000 bd, Nigeria 105,000 bd, and Brazil 186,000 bd in July.
Oman contributed 178,000 bd, while US crude shipments stood at 124,000 bd. These flows, though smaller, provide resilience against sudden disruptions in the Gulf or Red Sea chokepoints.
The strategic importance of Russian crude is further underscored by India’s rupee trade settlements. Between March and May, India settled nearly $15 billion worth of imports in rupees, much of it linked to Russian oil purchases. This reflects New Delhi’s effort to insulate trade from currency volatility and sanctions pressure.
India’s energy security remains vulnerable to geopolitical risks around the Strait of Hormuz and Bab el-Mandeb. Analysts warn that disruptions in the Red Sea could affect Saudi crude flows, freight costs, and refinery operations. Nevertheless, the July figures confirm that Russia has become India’s dominant supplier, while Gulf producers are regaining ground as regional flows stabilise.
Agencies
