India seeks oil supplies from Latin America and Africa following disruptions in the Hormuz Strait

Indian refiners sought imports from Latin America and Africa following disruptions in supplies from the Middle East, as the Israeli-U.S. conflict with Iran limited shipping in the Strait of Hormuz, according to data from trade sources.

Refiners in the world’s third-largest oil importer and consumer sourced the majority of their crude from the nearby Middle East until the war erupted at the end of February.

In April and May, Indian refiners increased their imports from Venezuela, Brazil, Angola, and Nigeria to compensate for the shortfall, while also maintaining their purchases of Russian oil, according to preliminary data from Kpler.

Last month, India refrained from buying oil from Iraq due to halted exports, while it resumed imports of Iranian oil after a seven-year hiatus, thanks to a temporary waiver from Washington aimed at stabilizing global oil prices.

New Delhi decreased its imports from Russia by approximately 29.4%, bringing the total to 1.6 million barrels per day, as Nayara Energy halted operations at its 400,000-bpd refinery for maintenance, according to the data.

In May, India is expected to receive approximately 1.9 million barrels per day of Russian oil and around 41,000 barrels per day of Iraqi oil, according to preliminary data from Kpler.

In April, India imported 4.57 million barrels per day of oil, remaining consistent with March figures, yet reflecting a decline of 15.5% compared to the same month last year, according to the data.

In April, imports from the United Arab Emirates increased significantly to 669,700 bpd, up from 230,600 bpd in March, while the intake of Saudi Arabian oil remained steady at approximately 619,500 bpd, according to the data.

The UAE and Saudi Arabia stand out as the sole Gulf producers equipped with pipelines that facilitate crude exports without traversing the Strait of Hormuz. In contrast, Kuwait, Iraq, Qatar, and Bahrain depend on this vital waterway for their shipments.

The share of the Organization of the Petroleum Exporting Countries, which includes the UAE as a member, in India’s imports increased to 45.2% in April, up from approximately 30% in March, according to the data.

The UAE left OPEC in May, liberating itself from oil output quotas.
Increased imports from the UAE contributed to stabilizing the Middle East’s portion of India’s imports, whereas the share of Russian oil decreased to approximately 35% from nearly 50%.

Russia continued to be India’s leading oil supplier, with the UAE and Saudi Arabia following closely behind. Brazil ranked as the fourth-largest supplier, with Venezuela following closely in fifth place. According to Kpler data, Venezuela is set to become the fourth-largest supplier in May.