Crude oil supplies from the Gulf to India are recovering after an abrupt drop in the last few months due to producers looking at other options to ensure shipment despite the transit risks in the Strait of Hormuz.
Supplies of Gulf crude oil into India have recovered to about 1.52 million barrels per day (mb/d) so far in the month, compared to June which saw 1.03 mb/d, according to Kpler data obtained by NDTV Profit. June's figure was the lowest seen in Kpler's data set since 2017.
The revival shows that suppliers in the Gulf are taking other steps to ensure that crude oil supplies continue even amid risk factors in the region. Some of these risk factors are being shouldered by the suppliers as well. This is being done through ship-to-ship transfers from Sohar and Fujairah.
The growth in supplies in September is being driven by Iraq, the UAE, and Kuwait. The shipments from Iraq to India amounted to 7.8 million barrels via six tankers in the first three weeks of September against 5 million barrels in August through five tankers.
Crude oil supplies from the UAE have been robust, with almost 9 million barrels having reached India in September so far. Additionally, Kuwait has become a supplier to India in the month of September so far, supplying 5 million barrels.
The resurgence in Gulf shipments has come after a significant drop in India's crude oil imports from the Gulf in the beginning part of the year.
Citing sources within the data, analysts noted that new shipping arrangements and sellers' willingness to take shipping risks are ensuring Gulf shipments reach India.
