India's crude oil stockpiles surged to a near one-year high of 104 million barrels at the end of June, up from 90.5 million barrels two months earlier. The build comes as the world's third-largest crude buyer boosted imports to a record level last month, according to data from commodity intelligence provider Kpler cited by the Economic Times.
The inventory jump reflects a strategic push to secure supply amid global market uncertainty. India's commercial and strategic reserves, including refinery storage, now sit just shy of the 107 million barrels held before the Iran war, suggesting a deliberate effort to rebuild buffer stocks.
The record import wave underscores India's growing reliance on foreign crude to feed its expanding refining capacity and meet rising domestic demand. The country's storage infrastructure has been strained by the influx, though no operational disruptions have been reported.
Geopolitical tensions in the Middle East are likely forcing New Delhi to stockpile ahead of potential supply shocks. The buildup mirrors a broader trend among Asian buyers who are hoarding crude as a hedge against disruptions to Red Sea shipping lanes and OPEC+ production cuts.
This strategy carries risks: if global prices correct sharply, India could face inventory losses. Alternatively, the buffer may prove vital if the Iran conflict escalates, giving India more time to secure alternative cargoes without panic-buying at inflated rates.