Asian crude imports fall as hormuz disruption nears eighth week

Tuesday 21 April 2026 - 13:20

By: Dakir Madiha

Asian crude imports fall as hormuz disruption nears eighth week

Crude imports across Asia are declining as the closure of the Strait of Hormuz approaches its eighth week, exposing the limits of alternative supply routes. Major importers including China, India, South Korea and Japan are struggling to replace Middle Eastern crude that previously moved through the corridor, which typically carries around one fifth of global seaborne oil.

In India, crude imports dropped 17 percent year on year in March to 18.9 million tonnes, the lowest monthly level in five years. Roughly 30 percent of India’s oil supply normally transits through the strait. To offset disruptions, refiners increased purchases from Russia to about 2 million barrels per day, supported by a temporary extension of sanctions exemptions by the US Department of the Treasury. Despite this shift, supply gaps remain significant as the disruption enters its third consecutive month.

China recorded a more moderate decline, with imports falling 2.8 percent year on year to 49.98 million tonnes in March. However, refiners reported sharp reductions in deliveries from Gulf producers such as Saudi Arabia and Iraq. Shipments from Saudi Arabia are expected to drop further in May. Beijing has compensated by increasing imports from Russia, which rose more than 40 percent in early 2026, supported by pipeline infrastructure linking Russia and Central Asia.

South Korea has undertaken one of the most aggressive adjustments. The share of Middle Eastern crude in its imports fell to 62.9 percent in March from 73 percent a year earlier, while non-Middle East supplies surged. Imports from the United States rose 75.8 percent, with additional volumes sourced from Australia and Malaysia. The government has subsidized freight costs for alternative supplies and released 20 million barrels from strategic reserves to stabilize domestic refiners.

US producers have increased exports to fill part of the gap. Shipments from the US Gulf Coast are expected to reach a record 5 million barrels per day in May, up from about 3.97 million in March. Refined product exports also hit record levels as Asian and European buyers sought replacements. However, analysts say these volumes cannot fully compensate for the disruption. The Hormuz route normally channels a large share of global oil trade, and inventories have already fallen by an estimated 85 million barrels.

A brief reopening of the strait in mid-April lasted only one day before traffic halted again. Shipping activity remains severely constrained, with only a handful of vessels passing daily compared with more than 120 before the conflict. Structural challenges are also emerging. South Korean refineries, designed for heavier Middle Eastern crude, face efficiency issues when processing lighter US shale oil. Industry officials say reducing dependence on Gulf supplies will require long-term investment in refining infrastructure alongside policy support.