India's Gulf oil imports surpass Russia for first time since start of Iran war

Detailed summary

India's oil imports from the Persian Gulf have surpassed Russian imports for the first time since the Iran war, as tankers restore flows through the Strait of Hormuz and Middle…

India’s oil imports from the Persian Gulf have overtaken those from Russia for the first time since the beginning of the Iran war, as shuttle runs by tankers help restore flows through the Strait of Hormuz.

Crude shipments reaching India through the crucial Middle East chokepoint have climbed to 2.1 million barrels a day so far this month, surpassing Russian imports of 1.8 million barrels a day, according to Kpler.

Daily flows via Hormuz to the world’s third-largest oil buyer had plunged to just 247,000 barrels in April from an average of 2.8 million in February, after attacks on ships effectively closed the waterway as the war between the US and Iran intensified.

Major Gulf producers are now shipping crude at close to pre-war rates. Combined exports from Saudi Arabia, the United Arab Emirates, Iraq and Kuwait rose to 15.53 million barrels a day in October, roughly in line with levels at the start of the year.

Russian exports, meanwhile, have been hit by continued Ukrainian attacks on the country’s energy infrastructure. Overseas shipments slipped by 40,000 barrels a day to 3.63 million in the four weeks through Nov. 8, tanker data compiled by Bloomberg showed.

Russia, India’s biggest oil supplier, had helped fill the gap left by dwindling Middle East shipments. Its position is now being challenged by Persian Gulf producers as traffic through Hormuz recovers, allowing Indian refiners to return to their traditional suppliers.

Economics are also driving the shift. Middle Eastern producers are offering competitive prices and moving crude through Hormuz before transferring cargoes to customers’ tankers outside the waterway. Russian oil, by comparison, has become more expensive because of elevated freight costs and longer voyages.

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