India braces for Hormuz shock

Russian crude may return to play, feel analysts

- SAURAV ANAND

RISING TENSIONS BETWEEN Iran and the United States are once again sending tremors through global oil markets, putting the Strait of Hormuz firmly back in focus — and sharply raising India’s exposure to one of the world’s most fragile energy arteries.

With geopolitical risks escalating across West Asia, Indian refiners are quietly revisiting contingency sourcing strategies, including the possibility of turning back to higher volumes of Russia crude if West Asian supplies are disrupted.

“India’s crude imports through the Strait of Hormuz have increased over the past two to three months as refiners trimmed purchases of Russian barrels following US and EU sanctions and turned back to Gulf producers. Until October-November, around 40% of India’s total crude imports moved through the Strait of Hormuz.

That share has since risen to roughly 50% over the past three months.

In the event of any disruption in the Strait of Hormuz, Indian refiners may increase purchases of Russian crude to safeguard energy security and maintain supply stability,’ said Nikhil Dubey, senior refining analyst at Kpler.