The temporary easing of U.S. sanctions on Russian oil has quickly reshaped global flows, with India once again emerging as a major buyer. As Russian shipments to Asia surge, prices for Urals crude have climbed, reflecting tightening supply in the medium-sour market.
After sanctions hit in late 2025, India had reduced its reliance on Russian oil and turned to Middle Eastern suppliers like Saudi Arabia and Kuwait, while U.S. exports briefly increased. But the March 12 decision by Washington to allow previously loaded oil cargoes to be sold rapidly brought buyers back, absorbing floating storage and tightening the market.
Russian exports to India rebounded sharply, nearly doubling to over 2 million barrels per day in March, close to record levels. This comes even as India’s overall oil imports declined due to seasonal factors and supply disruptions.
Geopolitical tensions also played a role. Disruptions in the Strait of Hormuz cut access to key Middle Eastern suppliers, including Iraq, Kuwait, and partially Saudi Arabia and the UAE. In response, India moved quickly to replace those barrels with Russian crude and additional Venezuelan supply.
The shift highlights a strategic adjustment: Russian oil is replacing lighter Middle Eastern grades, while Venezuelan crude fills heavier supply gaps, aligning well with India’s refinery needs.
Both state-owned and private refiners increased purchases, with Indian Oil Corporation leading the surge and companies like Reliance ramping imports again. Overall, Russian Urals crude now dominates India’s import mix, reinforcing its central role in the country’s energy strategy.