India Crude Import Prices Hit Five-Month High Amid Supply Shocks

India's crude oil import basket price reached a five-month high of $131.19 per barrel on September 15, 2026, driven by a convergence of geopolitical pressures and supply shocks. The Government of India, which relies on imports for 90% of its oil requirements, is facing significant uncertainty as multiple global supply chains fail simultaneously.

Supply disruptions began in late February with instability in the Strait of Hormuz and have since escalated. Last week, drone attacks forced the Government of Saudi Arabia to close its East-West pipeline, potentially removing 4 million barrels per day from the global market and cutting more than 400,000 barrels per day of flows specifically to India. This shutdown has left Saudi export inventories at Red Sea ports with only five to seven days of cushion, while Houthi militant strikes in the Bab el-Mandeb strait further squeeze regional shipping.

India's alternative sources are also under pressure. Russian crude exports are constrained by refinery outages and attacks on Black Sea infrastructure, while China has increased its competition for remaining Russian barrels. Additionally, the United States House of Representatives is considering the Lindsey Graham Sanctioning Russia and Iran Act of 2026. This legislation would allow President Donald Trump to impose tariffs up to 100% on buyers of Russian energy. While India procures oil from 40 countries, these disruptions are narrowing Russian discounts and increasing inflationary risks for the Indian economy.