Indian cos in talks with alternate crude sources amid W Asia conflict - S&P
This story was originally published at 15:49 IST on 5 March 2026
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NEW DELHI – Indian refiners currently have sufficient crude stocks but have begun negotiating for incremental crude oil cargoes from the US, Russia, and West Africa to ensure comfortable supplies in case of prolonged conflicts in West Asia, S&P Global said. However, alternate sourcing can be costlier due to higher prices, freight, insurance costs, and longer shipping routes.
"There is no need to cut throughput yet. Domestic crude stocks with refiners are sufficient for now. But refiners have started talking to alternative sources to bring in displaced volumes if there is a need," the report quoted Shrikant Madhav Vaidya, former chairman of state-owned Indian Oil Corp.
India's current total national storage capacity for crude and petroleum products is up to 74 days of total net imports – with 9.5 days from Strategic Petroleum Reserves and 64.5 days from state-run oil companies' storage facilities – according to petroleum ministry data.
In addition, Indian refiners could limit oil product exports and divert some of it to the local market if the West Asia conflict drags on, the report quoted industry officials. Iran has closed the Strait of Hormuz after US and Israel jointly attacked Tehran.
According to the report, around 52% of India's roughly 5 million barrels per day of crude imports pass through the Strait of Hormuz, with Iraq, Saudi Arabia, the UAE, Kuwait, and Qatar as its key West Asia suppliers. "It will not be surprising to see Russian volumes rising again temporarily. It will be easier for Indian refiners to bring in those cargoes for immediate replacement rather than bring them all the way from the US or West Africa," the report quoted a source as saying. End
US$1 = INR 91.60
Reported by Afra Abubacker
Edited by Saji George Titus
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