Most Indian oil refiners skip buying Russian crude for December

Economic Times
Economic Times
22h ago 5 views
Most Indian oil refiners have stopped buying Russian crude for December due to US tariffs and sanctions. This marks a significant change in India's oil purchasing strategy.
Most Indian oil refiners skip buying Russian crude for December
A What happened
Most Indian oil refiners have opted not to buy Russian crude for December, indicating a significant change in their purchasing habits. This decision comes after the US imposed higher tariffs on Indian imports and sanctioned major Russian oil producers. Historically, India has relied heavily on discounted Russian crude, but recent geopolitical tensions and trade negotiations with the US have prompted this shift. Five major refiners, including Reliance Industries and Bharat Petroleum, have not placed orders for Russian oil, which typically would have been finalized by now. Only two companies, Indian Oil Corp. and Nayara Energy, have made limited purchases. The reluctance to buy Russian crude is also influenced by the need for thorough due diligence to avoid sanctioned entities in the supply chain. As India seeks to diversify its oil sources, it has engaged with traditional suppliers in the Middle East and is looking to increase imports from the US.

Key insights

  • 1

    Shift in Oil Purchasing

    Indian refiners are changing their oil sourcing strategies.

  • 2

    Impact of US Sanctions

    US tariffs and sanctions are affecting India's oil imports.

  • 3

    Reliance on Russian Oil

    India's previous dependence on discounted Russian crude is declining.

Takeaways

The halt in Russian crude purchases by Indian refiners signifies a major shift in the country's oil import strategy, influenced by geopolitical factors and trade negotiations with the US.

Topics

Economy International Affairs Energy