Russia has offered to divert shipments of crude oil to India to offset supply disruptions linked to the Strait of Hormuz crisis, with nine point five million (mn) barrels of Russian crude reported in vessels near Indian waters and able to arrive within weeks. An industry source said cargoes on non-Russian ships could be redirected to give refiners rapid relief without disclosing original destinations.

India is exposed to supply shocks because crude stocks cover about 25 days of demand, with refiners holding similarly limited inventories of gasoil, petrol and liquefied petroleum gas. Around 40 per cent of India’s crude imports transit the Strait of Hormuz, and near closure of the route has compelled the country to seek alternative supplies. Indian refiners process about five point six mn barrels per day, limiting the time available to reroute feedstocks.

The industry source said Russia was prepared to meet up to 40 per cent of India’s crude needs if required, while Indian purchases of Russian crude fell to about one point one mn barrels per day in January before rising back to roughly 30 per cent of imports in February. Any material increase in shipments from Moscow was indicated to depend on government guidance as trade talks with the United States continue and as India seeks to balance geopolitical pressures. New Delhi has reiterated that its strategy is to diversify supplies in line with market conditions and evolving international dynamics.

Russia was also reported to be ready to sell liquefied natural gas after a major supplier curtailed output, and Indian companies have reduced gas supplies to some industrial customers to manage shortfalls. Both China and India obtain about half of their crude from the Middle East, but India has less storage and is therefore more exposed to regional disruption. The situation has prompted authorities and firms to explore a range of logistics and procurement options to maintain refinery runs and fuel supplies.