According to sources familiar with the matter, the cargoes were secured at premiums ranging between $5 and $15 per barrel. This shift highlights a significant change from earlier periods when Russian oil was available at deep discounts, indicating tightening global supply conditions and sustained buying interest from India.
The contracted volumes are broadly in line with March purchases but represent a sharp increase compared to February, when imports were significantly lower. At that time, the United States had not yet issued a sanctions waiver for Russian crude already loaded on tankers. The waiver, introduced earlier in March, aimed to ease supply pressures and stabilize prices for major importers like India.
With Middle Eastern supply still heavily disrupted due to ongoing geopolitical tensions, Indian buyers appear to be betting on continued availability of Russian barrels and the possible extension of the U.S. waiver. Although recent ceasefire discussions between the U.S. and Iran have temporarily weighed on oil prices, uncertainty remains high, and supply recovery is far from assured.
Following the waiver announcement, global competition for Russian cargoes intensified. Shipping data indicates that several tankers originally bound for China were rerouted to India, underscoring the urgency among refiners to secure supply. In the first half of March alone, Russian crude volumes on the water declined by over 20 million barrels, reflecting strong buying activity.
As a result of this rebound in purchases, Russia is expected to regain its position as India’s top crude supplier, after briefly being overtaken by Iraq in February.
Overall, India’s aggressive procurement of Russian crude highlights the shifting dynamics of global oil trade, with buyers adapting quickly to geopolitical developments and supply constraints.
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