Russian Crude Passes Half of India's Oil Imports as Middle East War Reshapes Supply

India's dependence on Russian crude has reached an all-time high, the Financial Times reported, and the newspaper framed the shift as evidence of New Delhi's energy security vulnerability rather than of commercial strength.

Russian and Indian accounts emphasize the same figures. Russian crude accounted for more than half of India's import volumes in July, with Indian refiners lifting about 2.47 million barrels a day, a 62.4 percent increase from a year earlier, according to trade data cited by Indian and Russian outlets. The average price of Urals fell about 3 percent in July to 60.22 dollars a barrel, well below the 93.87 dollars at which Brent settled on August 21.

Indian commentary attributes the concentration to the war between the United States and Iran, which has raised freight and insurance costs on Gulf cargoes and made discounted barrels arriving through longer routes more attractive than nearer supply.

The price discount is the entire rationale for the trade. It exists because sanctions restrict the buyer pool for Russian barrels, and it survives only while those restrictions hold and while alternative Gulf supply carries a war premium. India, the world's third-largest oil importer, has replaced diversification with a single dominant supplier priced roughly 34 dollars below the global benchmark.