Industry Odisha Bureau, Oct 03: India’s crude oil imports hit a 2026 high of 5.26 million bpd in September. Gulf supply recovered as more tankers crossed the Strait of Hormuz. Refiners now have more choice, though risks remain.
Middle Eastern crude is flowing back to Indian refiners. It is doing so despite continuing risks in the Strait of Hormuz. That recovery lifted India’s crude oil imports to 5.26 million barrels a day in September. It was the highest level so far in 2026. The bigger story, however, lies in where those barrels came from.
Iraq Moves Up the Table
Russia remained India’s largest supplier, at 1.872 million barrels per day. Iraq ranked second with 525,000 bpd. It was the first time Iraq held that spot since the US-Iran conflict began. That conflict started on February 28.
Saudi Arabia followed closely at 517,000 bpd. The UAE supplied 438,000 bpd and Kuwait 335,000 bpd. The ranking reflects September flows, not a permanent shift.
How Tankers Cross Hormuz
A logistics workaround has supported the recovery, according to the report. Dozens of large crude carriers reportedly cross Hormuz with AIS transponders switched off. These systems normally broadcast a vessel’s location.
Cargoes are then moved through ship-to-ship transfers in UAE and Omani waters. Other vessels carry the crude onward to customers. The original carriers return to Gulf terminals for another run.
Gulf national oil companies and some global traders are arranging these voyages. They are taking on risk, as attacks on vessels continue to be reported. The report said this raises questions about Iran’s control of the waterway.
Gulf Supply Regains Share
According to Kpler, Gulf producers supplied 39% of India’s crude imports in September. The group includes Saudi Arabia, Iraq, the UAE, Kuwait, Oman and Qatar.
Kuwait was the biggest surprise. Its 335,000 bpd marked its highest volume in a year. Iraqi and Kuwaiti supplies had nearly vanished from India’s import slate for months. That followed the outbreak of the Iran war.
Refiners Gain More Choice
Many Indian refineries are configured to process Middle Eastern crude. Kpler analyst Nikhil Dubey said the extra barrels help restore some lost supply. He said they also offer grades with relatively strong middle-distillate yields. Those yields suit India’s domestic product demand, according to Dubey.
Russian Exposure Meets New Options
Gulf barrels have not replaced Russian crude. They do, however, widen the menu for Indian buyers. That matters after the recent passage of the Graham Bill in the US. The bill empowers the US president to impose tariffs of up to 100%. These could apply to India and other buyers of Russian oil.
Dubey said Gulf availability gives refiners additional sourcing optionality. That would help if they need to reduce Russian exposure.
A Saudi Route Reopens
Saudi Arabia has added another channel. Its East-West pipeline was attacked by the Houthis in September. It has since resumed operations. Crude has begun loading at the Red Sea port of Yanbu.
Diversification Without Certainty
September’s data shows India’s supply options widening. Gulf supply now offers refiners a familiar alternative alongside Russian barrels. But much of that supply still depends on ships crossing a risky waterway. Whether these flows hold will depend on conditions in and around Hormuz.
