Archive · 17 Sep 2026
Russian Oil Uncertainty Pressures India's Refiners Amid Middle East War
Indian oil companies are worried that getting enough crude oil may become harder.
Supplies through an important Middle East waterway have been disrupted.
Saudi Arabia also temporarily closed a pipeline after drone attacks.
This affected more than 400,000 barrels of oil per day headed to India.
Russia’s oil is becoming more expensive and could be harder for India to buy if new US penalties take effect.
India is trying to buy more oil from several other countries.
Those alternatives may cost more.
Indian oil stocks were at their lowest level since May, with about 20 days of imports available.
At the same time, India is expanding its refineries, which will require more crude oil.
India’s state-owned refiners have secured crude requirements for September and October but face uncertainty from November onward.
Disruptions through the Strait of Hormuz and the closure of Saudi Arabia’s East-West pipeline have affected supplies to India.
Russian crude is commanding a premium as the United States moves toward tougher measures against countries buying Moscow’s oil.
India is diversifying purchases from the United States, Brazil, Canada, Venezuela and Africa, but those supplies are expected to cost more.
Indian crude inventories fell to 93.5 million barrels, while new and expanded refinery capacity is increasing future demand.
- Who
- Indian state-owned refiners, with Russia, Saudi Arabia and the United States affecting their supply options.
- What
- Indian refiners are facing uncertainty over future crude-oil supplies and higher potential costs.
- When
- September and October requirements are secured, but concerns begin with November and beyond; the pipeline closure occurred last week and the US sanctions bill was approved on Wednesday.
- Where
- India’s crude supply routes, including the Strait of Hormuz and Saudi Arabia’s East-West pipeline.
- Why
- Middle East supply disruptions, the closure of a Saudi pipeline, rising Russian crude costs and possible US restrictions are tightening India’s options.
- India’s Russian-oil position
- India is currently Russia’s top buyer of seaborne crude.
- Secured requirements
- State refiners have secured their September and October crude needs.
- Saudi pipeline impact
- The East-West pipeline closure affected more than 400,000 barrels per day of flows to India.
- Crude inventories
- Indian inventories fell to 93.5 million barrels in the week beginning September 14.
- Inventory coverage
- The inventories were equivalent to about 20 days of imports.
- Refinery expansion
- A new 180,000-barrel-a-day refinery in Rajasthan is ramping up, while Indian Oil Corporation is adding more than 340,000 barrels a day of capacity by December.
- Alternative suppliers
- India is seeking additional supplies from the United States, Brazil, Canada, Venezuela and Africa.