India Doubles Russian Crude Imports as Urals Flip to Rare Premium Amid Global Supply Crunch

India doubles Russian oil imports to 2.1M bpd in March, utilizing a U.S. sanctions waiver to replace Middle Eastern supply lost to the Strait of Hormuz closure.

By: AXL Media

Published: Apr 3, 2026, 3:36 PM EDT

Source: The information in this article was sourced from Oilprice.com

Tactical Rebound in Indo Russian Energy Trade

India has decisively reset its energy strategy by doubling its Russian crude intake month on month in March, reaching a volume of 2.1 million barrels per day. This surge represents a rapid absorption of barrels that had been stranded at sea since U.S. sanctions were tightened in late 2025. The rebound is particularly notable given that Indian imports of Russian oil had previously plummeted to just over 1 million barrels per day in February. According to market analysts, this tactical shift allows New Delhi to fill the massive supply void left by the ongoing conflict in the Middle East, which has obstructed access to traditional suppliers like Iraq and Kuwait.

Sanctions Relief Unlocks Floating Storage

The sudden increase in flows was triggered by a Washington decision on March 12 to allow the sale of Russian oil already loaded onto tankers. This regulatory window prompted a scramble among Asian refiners to secure distressed cargoes, causing Russian floating storage to drain from 19 million barrels in January to just 8 million barrels by late April. The heightened competition for these specific grades has upended traditional pricing structures, with Russian Urals now trading at a rare $8 premium over the Brent benchmark. This price flip signals acute tightness in the medium sour crude market as refiners struggle to find suitable replacements for blocked Middle Eastern blends.

Filling the Gap Left by Hormuz Disruptions

The necessity of the Russian pivot is underscored by the near total loss of Iraqi and Kuwaiti supplies following the disruption of the Strait of Hormuz on February 28. Prior to the crisis, Iraq alone supplied India with approximately 1 million barrels per day, a volume that has essentially vanished from the market. To stabilize its energy security, India has also turned to Venezuelan crude as a heavy oil substitute, with six tankers scheduled for April arrival. By utilizing Russian Urals to replace lighter Middle Eastern grades and Venezuelan barrels for heavier blends, Indian refiners are successfully reconfiguring their slates to maintain output despite the regional war.