India increases Russian and UAE oil purchases as refiners hedge Hormuz risk

Indian refiners increased crude purchases from Russia in June and kept imports from the United Arab Emirates near record levels as they hedged against disruption risk around the Strait of Hormuz, according to reporting that cites Kpler data.

The buying pattern points to a shift toward supply security while Gulf flows recover unevenly. The reporting says the recovery is underway, but risks remain, leaving Indian refiners to lean on a broader mix of crude sources rather than depend too heavily on any single route.

What changed in June

Russia remained central to India’s crude procurement strategy, with imports rising sharply in June. UAE barrels also stayed elevated, with purchases described as near record highs for the month.

That combination suggests refiners were not just responding to price signals. They were also building a cushion against shipping uncertainty in a region that is critical to global oil and product trade.

The reporting attributes the supply pattern to Kpler-backed analysis. It says the increase is visible in June buying, while final customs data will be important for confirming how much of the shift is sustained.

Hormuz risk and Gulf recovery

The Strait of Hormuz remains one of the world’s most important energy chokepoints. Even as exports from the Gulf continue to recover, route risk has not fully disappeared, and that uncertainty is affecting refinery purchasing decisions.

The reporting says liquefied petroleum gas shipments are expected to be the first to normalize. Crude flows and broader shipping patterns may take longer to settle, which helps explain why Indian refiners increased purchases from Russia and the UAE at the same time.

India has used a wider supplier mix before when Middle East transport conditions become more uncertain. This latest buying pattern fits that broader strategy: protect feedstock security first, then adapt once shipping conditions stabilize.

Domestic price implications

The shift in crude sourcing also has a domestic angle.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri said petrol and diesel prices may ease as cheaper crude arrives. That does not guarantee an immediate retail-price response, but it shows the government is watching the import mix for possible relief at the pump.

The comment matters because India remains exposed to changes in global oil logistics and landing costs. If cheaper barrels continue to arrive in volume, refiners could face less pressure on input costs than they would under a tighter Gulf supply picture.

Shipping watch

The transport situation is improving, but it has not normalized completely.

Union Ports, Shipping and Waterways Minister Sarbananda Sonowal said three Indian-flagged crude tankers carrying more than 860,000 metric tonnes and 94 crew members had crossed the Strait of Hormuz and were heading home. That shows Indian-linked shipping is still moving through the corridor even as the market reassesses risk.

For now, the more important signal is that refiners are still acting defensively. They are buying more from Russia and keeping the UAE elevated until they are comfortable that recovery in Gulf exports is durable.

What to watch next

The next confirmation point is June import data. That will show whether Russian inflows set a new high or whether the increase is mainly a short-term hedge.

The other open question is how long UAE buying stays near record levels after Hormuz-related disruption eases. If shipping conditions normalize, the current pattern could unwind quickly. If risks persist, India may keep leaning on the same supplier mix.

A third issue is whether the return of Gulf trade happens in stages. The reporting suggests LPG shipments may recover first, with broader crude and product flows following later. That sequencing will matter for India’s refiners, domestic pricing and the country’s longer-term sourcing mix.