Indian refiners are tapping Russian oil aboard vessels floating offshore to offset lost Middle Eastern crude supplies, sources told Reuters. The move comes as India faces energy supply vulnerabilities, with crude stocks covering only about 25 days of demand. State refiner Indian Oil Corp berthed the Suezmax tanker Odune carrying one million barrels of Russian oil at Paradip port.

This pivot toward Russian crude follows India's January decision to reduce purchases from Moscow to avoid 25% U.S. tariffs and secure an interim trade deal. About 9.5 million barrels of Russian crude is currently floating near Indian waters, with vessels like the Spring Fortune scheduled to deliver 700,000 barrels to Vadinar port. Indian Oil is expediting purchases of floating Russian oil, though the company declined immediate comment.

Ship-tracking firm Kpler reports about 30 million barrels of Russian oil available in the Indian Ocean and Arabian Sea region, including floating storage. Analyst Sumit Ritolia noted that if Indian refiners don't act, these vessels could redirect to China within days. The development underscores how Middle East supply disruptions from the Iran war are forcing India to recalibrate its energy strategy, potentially at the cost of its delicate balancing act with Washington.