Indian oil refining companies are reviewing their oil import strategies to reduce purchases from their main supplier, Russia, and increase imports from the Middle East, which could help New Delhi conclude a trade agreement with the United States and lower tariffs. This is reported by Reuters, writes UNN.
Details
As the publication notes, after the start of the war in Ukraine in 2022, India became the largest buyer of discounted Russian oil, but this trade drew criticism from Western countries, which imposed sanctions on Russia's energy sector, stating that oil revenues help finance the war.
The shift away from Russian oil comes as Middle Eastern countries, taking advantage of increased production quotas from the Organization of the Petroleum Exporting Countries (OPEC), are providing global markets with ample supply, mitigating the impact on prices.
Indian refiners reduce purchases of Russian oil
Indian refineries began to reduce purchases of Russian oil after discussions at a government meeting on accelerating a trade agreement with the United States, three sources from the refining industry said. The Petroleum Planning and Analysis Cell of India collects weekly data on purchases of Russian and American oil, Reuters sources said.
India's largest refinery claims to have stopped buying Russian oil07.01.26, 02:42 • [views_4545]
Recently, state-owned Bharat Petroleum Corp (BPCL) concluded one-year tenders for the purchase of oil from Iraq (Basrah) and Oman from the trader Trafigura and is looking for Murban oil from the UAE through a separate tender, anonymous sources said. From April, Trafigura will supply four shipments of Omani oil quarterly at a discount of 75 cents per barrel from Dubai prices and one shipment of Basrah Medium at a discount of 40 cents per barrel from the official selling price, two traders said. BPCL and the Indian Ministry of Petroleum did not respond to Reuters' requests.
Double duty as punishment for Russian oil purchases
The United States, seeking to reduce its trade deficit with India, last year doubled import duties on Indian goods to 50% in response to large purchases of Russian oil. State-owned Hindustan Petroleum (HPCL), Mangalore Refinery and Petrochemicals (MRPL), and private HPCL-Mittal Energy Ltd have already stopped buying Russian oil. India's imports of Russian oil in December fell to a two-year low, while OPEC's share of supplies reached an 11-month high.
In addition to the Middle East, Indian refiners have increased purchases from Africa and South America. They are also increasing purchases of American oil to partially replace Russian oil and reduce the trade deficit with Washington, and are also looking for oil from Venezuela.