India Crude Price Rose from $69 to $114 per Barrel After Hormuz Closure as U.S. Became Top LNG Supplier

India’s weighted average crude price rose from $69 per barrel in March to more than $114 per barrel in April after the Strait of Hormuz closed. com reported that the months-long restrictions on energy trade through the strait produced the increase. India is the world’s third-largest oil importer, fourth-largest LNG importer, second-largest LPG importer, fourth-largest refiner, and fifth-largest exporter of refined petroleum.

The International Energy Agency expects India to become the largest driver of global oil demand growth between now and 2030. Around 45 per cent of India’s crude imports, 50 per cent of its LNG, and 90 per cent of its LPG passed through the strait when it was fully operational.

India used to rely heavily on Iran for its oil, but stricter sanctions on Iranian energy in recent years led it to shift its dependence to Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait.

Most of India’s LNG came from Qatar, the UAE, and Oman, while its LPG was sourced from the UAE, Qatar, Kuwait, Saudi Arabia, and Oman. U.S. sanctions on Moscow and President Trump’s trade-tariff threats last year have discouraged India from further developing this relationship.

The United States emerged as India’s largest LNG and LPG supplier following the Hormuz closure. Severe energy supply chain disruptions prompted India to deepen its ties with the United States to secure sufficient LNG supplies.

U.S. Treasury Department announced it would waive sanctions on the purchase of Iranian and Russian crude already in transit. The Iran waiver is no longer in place, while the Russian waiver had been extended to mid-June, with the potential for renewal. India is reassessing its plan to enhance energy security over the coming decades, with consideration of renewable energy expansion.