Mukesh Ambani's Reliance trying to re sell Middle Eastern crude in rare move

Economic Times
Economic Times
1M ago
39 views
Reliance Industries is now selling Middle Eastern crude oil after halting Russian imports due to sanctions. This shift is significant as it reflects the company's adaptation to geopolitical pressures in the oil market.
Mukesh Ambani's Reliance trying to re sell Middle Eastern crude in rare move
A What happened
Reliance Industries, one of India's largest oil refiners, has made a notable shift by reselling Middle Eastern crude oil after ceasing its imports from Russia due to recent Western sanctions. The company had been a significant importer of Russian oil, particularly from Rosneft, but has adapted its operations by purchasing approximately 12 million barrels of crude from the Middle East and the Americas. This includes various grades of oil from countries like Abu Dhabi, Qatar, Iraq, Brazil, and the U.S. The decision to resell some of these cargoes, including a sale of 1 million barrels of Basra Medium crude to a Greek refiner, indicates Reliance's strategic maneuvering in response to the evolving geopolitical landscape. The company is also facing challenges in reselling these cargoes profitably due to high freight costs and fluctuating prices in the market.

Key insights

  • 1

    Shift in Oil Sourcing: Reliance's move reflects a broader trend in adapting to geopolitical pressures.

  • 2

    Impact of Sanctions: Western sanctions on Russia have forced major changes in global oil supply chains.

  • 3

    Market Adaptability: Reliance demonstrates flexibility in sourcing and selling oil to maximize profits.

Takeaways

Reliance Industries' transition to reselling Middle Eastern crude oil underscores the significant impact of geopolitical events on global oil markets. The company's ability to adapt to these changes will be crucial for maintaining its position in the industry.

Topics

Business & Markets Economy World & Politics International Affairs Climate & Environment Energy

Stay ahead with OwlBrief

Join thousands of busy professionals who get independent news, research, and expert analysis — distilled into five concise briefs each day.

Newsletter

Join the OwlBrief insider list

Get concise briefs and the latest insights from OwlBrief — delivered on your schedule.