Oil trade shift: Russian cargoes head to India instead of China amid war disruptions

Oil shipments meant for China are being redirected to India, reshaping Asia’s energy dynamics

March 18, 2026

Russian oil tankers bound for China now divert to India amid Middle East conflict

Tanker diversions signal major shift in Asian oil trade dynamics

A significant reshuffle in Asia’s crude oil trade is underway, with Russian tankers originally bound for China now diverting mid-voyage towards India, according to a report by Bloomberg.

Vessel-tracking data indicates that several shipments have altered routes in recent weeks, highlighting India’s growing appetite for discounted Russian crude amid global supply disruptions triggered by tensions in West Asia.

One key example is the tanker Aqua Titan, which is now expected to arrive at New Mangalore Port on March 21 carrying Urals crude from the Baltic region. The vessel had initially listed Rizhao in China as its destination before rerouting in Southeast Asia.

The diversion follows a decision by the United States to allow India temporary flexibility to increase Russian oil imports amid disruptions linked to the Iran conflict.

India outbids China for discounted crude

Market data suggests India is increasingly outbidding China for Russian cargoes. Traders cited in the report said shipments originally intended for Chinese refiners are now being picked up by Indian buyers seeking to secure supply buffers.

Indian refiners are estimated to have secured nearly 30 million barrels of Russian crude in the week following the policy relaxation from Washington. Data from Vortexa Ltd. shows at least seven Russia-origin tankers have changed course and are now headed to Indian ports.

Strategic buying amid geopolitical tensions

The ongoing conflict involving the US, Israel, and Iran has heightened volatility across key oil shipping routes, prompting Asian economies to reassess their energy security strategies.

For India, discounted pricing combined with geopolitical leeway has created an opportunity to strengthen crude reserves and stabilise domestic supply chains.

Regional trade patterns may shift

Analysts believe that if the trend continues, India’s aggressive buying could reshape regional crude trade flows, especially if it continues to outcompete China for Russian supplies in the coming months.

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