economy
March 26, 2026
India Buys Russian Oil at Premium Amid Strait of Hormuz Disruption
Indian refiners have booked around 60 million barrels of Russian oil at $5-15 above Brent price as the Strait of Hormuz disruption tightens Middle East supplies
TL;DR
- Indian refiners have booked approximately 60 million barrels of Russian crude for April delivery.
- Purchases are being made at premiums of $5 to $15 a barrel above Brent, a departure from previous discounts.
- The disruption of shipping through the Strait of Hormuz has led to increased oil and gas prices.
- This surge in Russian oil purchases follows a US sanctions waiver that allowed imports of oil already loaded on tankers.
- India has become a key market for Russian oil since 2022, with purchases nearly doubling in 2024 compared to February.
- Middle Eastern oil supplies became trapped in the Persian Gulf following the Iran war, contributing to higher crude prices.
- India imports 85% of its oil and nearly half of its natural gas, with a significant portion routed through the Strait of Hormuz.
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