Strategic Lens
Why is India talking to the UAE about storing oil?
What happened. In May 2026 the two sides agreed to explore ADNOC oil storage in India of up to 30 million barrels, and storage of crude at Fujairah port as part of India's strategic petroleum reserve.
- In May 2026 the Iran war was disrupting the Strait of Hormuz, and the Indian prime minister called for an open and safe strait.
- India imported about USD 15 billion of crude oil from the UAE in 2025.
- In January 2026 India had already signed a USD 3 billion LNG supply deal with the UAE.
- Storing oil in India or at Fujairah would place a supply buffer inside India's strategic reserve.
Understanding. From our lens, this is insurance. India and the UAE are moving from buying and selling oil toward sharing storage, so that a disruption in the Gulf costs both less.
Benefits
- BothA larger buffer for India against supply shocks, and a steadier customer for ADNOC. (our reading)
Constraints
- BothThe plan is to explore storage, so terms and costs are not yet set.
Sources: Wikipedia: India–United Arab Emirates relations (revision of 24 September 2026); UN Comtrade (public preview API), annual goods trade, HS classification (retrieved 26 September 2026)
Last updated on 25 September 2026