India has quickly turned to Russian crude to secure its energy needs after a temporary US waiver allowed Indian refiners to purchase oil shipments that were already at sea. The move comes as escalating tensions in the Middle East disrupt traditional supply routes and threaten global oil markets.
Indian refiners have purchased nearly 30 million barrels of Russian crude in the past few days, according to people familiar with the transactions. The buying spree reflects New Delhi’s effort to maintain stable energy supplies after oil shipments from the Gulf region were affected by the ongoing regional conflict.
Why India Turned to Russian Oil Again?
For months, India had been gradually reducing purchases of Russian crude following pressure from Washington. To fill the gap, refiners shifted to suppliers in Saudi Arabia and Iraq. However, the widening conflict in West Asia has disrupted those supply lines.
The crisis has particularly affected shipments through the Strait of Hormuz, one of the world’s most important oil transit routes. Tanker movements have slowed significantly since the escalation of military strikes involving Iran, raising fears of a supply crunch.
As a result, Indian companies moved quickly to secure alternative barrels available in the market.
US-Iran War Impact: Indian Oil and Reliance Among Major Buyers
Refiners, including Indian Oil Corporation and Reliance Industries, reportedly purchased large volumes of the available Russian cargoes.
Traders said that around 10 million barrels were acquired by Indian Oil, while Reliance bought at least a similar amount, with other refiners also participating in the spot market purchases.
Most of the oil had already been loaded on tankers and was moving through Asian waters, but had not yet been committed to buyers.
The cargoes include multiple grades of Russian crude such as Urals, ESPO and Varandey, which Indian refiners often process due to their compatibility with domestic refineries.
Russian Crude Now Trading at a Premium
Interestingly, the price dynamics of Russian oil have also shifted due to the sudden surge in demand.
Before the Middle East conflict intensified, Russian crude was typically sold at a discount to global benchmarks. However, traders say the latest cargoes are being offered at premiums ranging from $2 to $8 per barrel over London’s Dated Brent benchmark.
The sudden premium reflects the tight supply situation and strong demand from buyers looking for immediate shipments.
India Oil Crisis: What the US Waiver Means for India?
The United States issued a 30-day waiver allowing Indian refiners to buy Russian oil that had already been loaded on ships before March 5, 2026. The policy is designed to ease short-term supply disruptions without significantly benefiting Russia financially, as the waiver only applies to cargoes already in transit.
The announcement included the statement, “To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil.”
The waiver will remain valid until early April and only applies if the oil is delivered to Indian ports and purchased by Indian companies.
India Oil Crisis: Tankers Redirected Toward Indian Ports
Following the waiver, several oil tankers that had initially moved away from the Indian subcontinent reportedly changed course. Some vessels that previously signalled destinations such as Singapore have now rerouted toward Indian ports as refiners scramble to secure supplies amid the volatile market.
India’s crude imports from Russia had peaked at over 2 million barrels per day in mid-2024, but had fallen to roughly 1.06 million barrels per day in February before the latest surge in purchases.
With the Middle East crisis continuing to disrupt global energy flows, analysts believe Russian oil may once again become a key source of supply for India in the coming weeks.
