India’s Gulf Oil Imports Overtake Russian Supply in November

The reversal points to a recovery in flows through the Strait of Hormuz. Ship-to-ship transfers have moved closer to India’s coast amid congestion in the Gulf of Oman and concerns about attacks on tankers near the strait, helping Gulf producers maintain deliveries to Asian markets.

Before the war, India imported an average of about 2.8 million bpd through Hormuz. During the early months of the conflict, now in its ninth month, Persian Gulf shipments to India fell as low as 247,000 bpd in April, when the strait was closed to almost all traffic.

Russia remains a major supplier, but Gulf producers have gained ground as their route to India is shorter and Hormuz flows have rebounded. In October, ship-to-ship transfers outside the strait became so crowded that operations began expanding to India’s west coast. The Gulf of Kutch, opening onto the Arabian Sea and facing the Gulf of Oman, has also become a transfer point for Gulf oil.

At the end of October, Bharat Petroleum Corporation Limited (BPCL), one of India’s largest state-owned refiners, said it would reduce Russian crude purchases in November. The company cited high freight costs and premiums that made Russian oil less attractive than multiple offers for Middle Eastern crude, whose prices were falling.