India intensified its reliance on Russian crude as Gulf supply disruptions intensified despite US sanctions pressure, according to multiple media reports on Tuesday.
Russian crude deliveries to India topped 2.3 million barrels per day in June, while July arrivals have remained close to that pace after trade between the two countries expanded sharply following Moscow's 2022 invasion of Ukraine, according to a Bloomberg report.
Trading intermediaries have enabled Russian crude to continue reaching overseas buyers despite US sanctions targeting several major producers, the report added.
Indian refiners reportedly increased purchases from Russia as Middle East supplies tightened and lower Russian prices improved their appeal, while renewed security threats disrupted shipping through the Strait of Hormuz.
Russia's four-week average seaborne crude exports eased for a second consecutive week to 4.16 million b/d through July 19, remaining close to the record level reached earlier this month.
Ukrainian drone attacks have reduced Russia's refining capacity, leaving more crude available for export while July refinery runs fell to their lowest level in over 21 years, deepening domestic fuel shortages.
Russian crude has become steadily cheaper over the past 13 weeks, with four-week average prices falling to little over half the levels recorded in mid-April, encouraging additional buying from Indian refiners.
Proposed US legislation imposing tariffs of up to 100% on major buyers of Russian energy, including India, could curb Indian demand, although President Donald Trump's support for the measure remains uncertain.
Russia loaded 27.73 million barrels of crude onto 37 tankers in the week ended July 19, or 3.96 million b/d. Seaborne volumes waiting at sea climbed to about 137 million barrels, according to Bloomberg, citing vessel-tracking data and port-agent reports.
India imported a record 2.64 million b/d of Russian crude in June, up 37.4% over the month and representing about half of the country's total crude imports of 5.24 million b/d, Reuters reported.
Russian crude accounted for almost 41% of India's oil imports during the April-June quarter, up from about 38% from a year earlier, while the Middle East's share declined to 31% from 41.4%.
Indian refiners also increased purchases from Brazil, Venezuela and Angola as fighting resumed after the collapse of the Washington-Tehran truce, disrupting traffic through the Strait of Hormuz.
Indian refiners expect to source more crude from Russia, West Africa and the Americas if disruptions in the Strait of Hormuz continue and Houthi threats expand, although shipping Saudi crude via the Cape of Good Hope would significantly increase transportation costs, Reuters reported.
India's Ministry of Petroleum and Natural Gas did not immediately respond to' request for comment.