Key facts
- India's crude oil inventories reached 104 million barrels by the end of June, a near one-year high.
- This level is close to the 107 million barrels held in February before the Iran war.
- India's crude oil imports hit a record 5 million barrels per day in June.
- Approximately 2.6 million bpd of June imports originated from Russia.
- India's strategic petroleum reserve capacity is 39 million barrels, equivalent to eight days of consumption.
India's crude oil inventories have surged to a near one-year high, reaching 104 million barrels by the end of June, driven by record import levels. The world's third-largest crude oil buyer boosted its purchases significantly in June, with over half of the 5 million barrels per day imported coming from Russia.
This increase in stocks follows a depletion in March and April, attributed to the Iran war. Indian refiners have since turned to alternative supply routes, increasing imports from Russia and Venezuela to bypass the Strait of Hormuz, a key chokepoint affected by Middle East conflict.
The country aims to reduce its crude import bill and enhance resilience against supply shocks. However, India's strategic petroleum reserve capacity of approximately 39 million barrels, or about eight days of consumption, remains significantly lower than that of other major oil consumers, highlighting its vulnerability to sudden disruptions.
Before the Iran war, India's crude oil inventories stood at 107 million barrels at the end of February, marking the highest end-month level for the preceding 12 months.