Gulf Oil Supplies to India Surge Through Hormuz Strait As Russian Imports Ease

Oil Flow Shift

India has secured a major rise in crude oil supplies through the Strait of Hormuz, bringing November volumes back near pre-conflict levels despite tensions involving the United States and Iran. According to Kpler data cited by Bloomberg, India received an average of 21 lakh barrels of oil per day through the strategic waterway in November. This marks a sharp recovery from April, when daily arrivals dropped to just 2.47 lakh barrels due to attacks on vessels after the Iran conflict began, compared to 28 lakh barrels daily in February before the fighting started. The Strait of Hormuz carries roughly 20 percent of the world's total oil and gas supplies.

Changing Supply Sources

As oil movement through Hormuz gradually improves, major producers like Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait have boosted exports, with their combined daily shipments reaching 1.55 crore barrels in October. Tanker transfers outside the strait have also helped normalise deliveries. Consequently, Gulf supplies to India have overtaken Russian imports by roughly 3 lakh barrels per day, with Russian imports declining to 18 lakh barrels daily. Middle Eastern producers are offering competitive prices, while long shipping distances, rising freight costs, and Ukrainian attacks on Russian energy infrastructure have impacted Russian export volumes and costs.

Economic Impact

India imports approximately 85 percent of its crude oil needs, making supply source adjustments vital for the national economy. Brent crude trades near 92 dollars per barrel, WTI crude is around 85 dollars per barrel, and Murbán crude stands at 93 dollars per barrel. Meanwhile, global energy markets experienced shortages across Pakistan, Bangladesh, South Korea, and London when the Hormuz route faced severe disruptions following US blockades and Iranian closures.

Context

India is one of the world's largest energy consumers and relies heavily on imported crude oil to run its domestic economy and transport sector. Sourcing petroleum from multiple regions helps cushion the domestic market against sudden price spikes and geopolitical blockades in critical maritime corridors.