India’s crude oil imports rose to a 2026 high of around 5.26 million barrels per day (mbd) in September, supported by a strong recovery in supplies from Gulf producers. The increase came despite continued risks around the Strait of Hormuz, one of the world’s most important oil-shipping routes.
The latest data shows that more Middle Eastern crude is once again reaching Indian refiners, with Gulf producers and traders using alternative shipping arrangements to keep supplies moving. Iraq also emerged as India’s second-largest crude supplier after Russia in September, marking a significant change in the country’s import pattern since the US-Iran conflict began in February.
Hormuz Risk: How Gulf Oil Is Still Reaching India
The rise in Gulf supplies has highlighted how oil producers and shipping companies are adapting to the risks surrounding the Strait of Hormuz.
According to reports, large crude carriers have been crossing the waterway with their Automatic Identification System (AIS) transponders switched off. After passing through the Strait, the vessels can transfer their cargo through ship-to-ship (STS) operations in UAE and Omani waters.
The crude can then be loaded onto other vessels and transported to customers, while the original tankers return to Gulf terminals to collect additional cargo. This shipping arrangement has helped restore part of the Middle Eastern oil supply reaching India despite the security risks in the region. The recovery is particularly important for Indian refiners because several domestic refineries are configured to process crude grades from the Middle East. “Increased Middle East barrels availability not only helps restore some of the lost supply but also provides access to crude grades with relatively strong middle-distillate yields, which align well with India’s domestic product demand slate,” said Nikhil Dubey, lead analyst, refining at commodity analytics firm Kpler.
India Crude Imports: Iraq Becomes Second-Largest Supplier
Kpler data shows that Saudi Arabia, Iraq, the UAE, Kuwait, Oman and Qatar together accounted for about 39 per cent of India’s crude imports in September. Iraq supplied about 525,000 barrels per day (bpd), placing it behind Russia and making it India’s second-largest crude supplier for the month. Saudi Arabia followed with around 517,000 bpd, while the UAE supplied approximately 438,000 bpd. Kuwait also recorded a significant recovery. Its shipments to India reached about 335,000 bpd in September, the highest level in a year.
The return of Iraqi and Kuwaiti crude is notable because supplies from both countries had fallen sharply for several months after the conflict in the region began on February 28. Their renewed shipments, along with higher supplies from other Gulf producers, helped push India’s overall crude imports to their highest level of 2026.
West Asian Oil Gains Share in India’s Import Basket
The September increase reflects a broader recovery in West Asian crude supplies. Financial Express, citing Kpler data, reported that imports from West Asia rose 74 per cent month-on-month to 2.10 million bpd in September, compared with 1.21 million bpd in August.
West Asian suppliers accounted for around 39.5 per cent of India’s total crude imports, compared with 26 per cent in August. At the same time, Russian crude remained India’s largest source of oil, although shipments declined from earlier levels. This changing mix has given Indian refiners more options as they manage geopolitical and supply-related risks.
Indian Refiners Get More Options Beyond Russian Oil
The increase in Middle Eastern supplies could provide Indian refiners with greater flexibility in sourcing crude, particularly as uncertainty around Russian oil purchases increases. The recently passed Graham Bill has added another layer of uncertainty because it gives the US president powers to impose tariffs of up to 100 per cent on countries purchasing Russian crude, according to reports.
“Ample Middle East barrels availability provides Indian refiners with additional sourcing optionality should they need to reduce their exposure to Russian barrels,” Dubey said. This means the recovery in Gulf supplies is significant not only because it restores lost volumes but also because it gives refiners another source of crude if Russian supplies become more difficult or costly to purchase.
Strait of Hormuz: Shipping Strategy Keeps Oil Moving
Gulf national oil companies and international trading firms continue to arrange tanker movements through the Strait of Hormuz despite ongoing security concerns and reports of attacks on vessels. The use of AIS shutdowns, STS transfers and alternative shipping arrangements has helped maintain crude flows through the region. Recent data also indicates that Middle Eastern oil exports recovered sharply in September, although flows remained below their pre-conflict levels.
Meanwhile, Saudi Arabia’s East-West pipeline has resumed operations after an attack by the Houthis in September. Crude is again being loaded at the Red Sea port of Yanbu, providing Saudi Arabia with an alternative route for exports that does not depend entirely on the Strait of Hormuz.
The combination of recovering Gulf supplies, alternative shipping arrangements and additional export routes has helped India maintain crude availability despite continuing geopolitical risks around Hormuz.
