India has replenished its crude oil stocks, with oil inventory levels now near a one-year high. India’s crude oil inventories have recovered sharply and are now close to their highest levels in nearly a year, helped by huge volumes of imports that have helped replenish stocks after the depletion seen during the June quarter.At the end of February, just before the US-Iran conflict began, India’s crude stockpiles had reached 107 million barrels, their highest month-end level in the preceding 12 months.As the conflict disrupted crude import flows, refiners relied on existing inventories to keep refinery operations running smoothly. As a result, crude stocks declined to 95.5 million barrels by the end of March and fell further to 90.5 million barrels by the close of April.
India’s crude oil inventory near 1-year high
According to estimates from Kpler, a global real-time data and analytics provider, India’s crude oil inventory stood at 104 million barrels at the end of June, up significantly from 90.5 million barrels at the end of April.Also Read | Hormuz oil shock sends India back to Russia: Is this a peak or the new normal?The estimates cover strategic petroleum reserves, commercial storage and refinery inventories, but do not include the crude oil that is stored in pipelines or aboard tankers which are headed to India.With the country consuming around 5 million barrels of crude each day, the current inventory is enough to meet approximately 21 days of demand, according to an ET report.An industry executive said refiners maintained high operating rates to ensure uninterrupted fuel availability and prevent any inconvenience to consumers, noting that widespread shortages at fuel stations could have resulted in political repercussions.“By and large, there was no disruption, no shortage and no queues at fuel stations,” Oil Minister Hardeep Singh Puri said on Thursday.There were, however, isolated reports of fuel shortages and rationing in some states. The government attributed these instances to panic buying, consumers shifting from private fuel retailers to state-owned outlets, and bulk buyers purchasing fuel from retail pumps.With the closure of the Strait of Hormuz during the conflict threatening nearly 40% of India’s crude oil imports, refiners moved quickly to source alternative supplies from global markets. They were prepared to pay a premium to secure cargoes wherever available. The continued availability of Russian crude following the US sanctions waiver helped soften the impact of the disruption, limiting the decline in India’s overall crude imports.Also Read | Trump tariffs uncertainty: Indian exporters see more enquiries from US, but not many orders – here’s whyAccording to Kpler, India’s crude oil imports dropped 14% to 4.47 million barrels per day (mbd) in March from 5.2 mbd in February. Imports then edged up to 4.54 mbd in April before rebounding to 4.96 mbd in May. In June, they stood at 4.93 mbd.With the United States and Iran now having reached an interim agreement and shipping through the Strait of Hormuz partially resuming, concerns over crude oil supplies have eased considerably.“All our vessels are through,” Oil Minister Hardeep Singh Puri said, referring to ships that had faced delays in the Persian Gulf over the past few months. “We are now in a situation where it’s not problematic.”
Oil imports from Russia at historic high
The conflict between the US and Iran has driven India’s imports of Russian crude oil to a record high. Imports from Russia crossed 2.5 million barrels per day in June, accounting for more than half of India’s total crude purchases, as refiners built inventories to strengthen supply security for the months ahead.Russia remains India’s largest crude oil supplier and continues to occupy a central position in the country’s import basket.Since the US-Iran conflict began, Russia has firmly established itself as India’s dominant crude supplier, with shipments exceeding 240 million barrels over the four-month period. That is more than four times the volume imported from the second-largest supplier, the UAE, which supplied just over 58 million barrels during the same period.Despite Russia’s dominance, the Middle East continues to play a significant role in meeting India’s energy needs through alternative shipping routes. The UAE and Saudi Arabia have remained the country’s second- and third-largest crude suppliers since March, while Venezuela has also strengthened its position and now ranks among India’s top five sources of crude oil.Also Read | Trump waives sanctions on Iran crude oil: What it means for India