Indian refiners are changing their oil import strategies, moving away from Russia and focusing more on the Middle East. This shift aims to strengthen ties with the United States and possibly secure a trade deal that lowers tariffs.
Since the invasion of Ukraine, India became the largest buyer of discounted Russian crude. However, this brought criticism from Western countries, which believe that Russia uses oil revenues to support its military efforts. Recently, Indian imports of Russian oil dropped to a two-year low, with OPEC’s share of India’s oil imports rising significantly.
According to recent trade data, OPEC’s market share has reached an 11-month high, thanks to increased production quotas from member countries. The abundance of oil in the market is helping to keep prices stable.
In response to these changes, Indian refiners have reduced their purchases of Russian oil. The Indian government has been collecting data on these imports to support negotiations for a US-India trade deal. Companies like Bharat Petroleum have started to buy oil from Iraq and Oman instead.
From April, Bharat Petroleum will receive regular shipments of Omani crude at competitive prices. This helps the company to promote stability in their supply chain while also catering to the shifting market dynamics.
The United States had previously increased tariffs on Indian imports to counter heavy Russian oil purchases. Recently, other major Indian refiners have followed suit, ceasing to buy Russian oil altogether. They are now exploring sources in Africa and South America, while also increasing purchases of US oil to help balance the trade deficit with America.
A broader perspective on this shift reveals the constant changes in global oil markets and their implications. As countries adjust their energy strategies in response to geopolitical pressures, India’s move away from Russian oil signifies a larger trend toward diversifying suppliers and reducing dependency on contentious sources.
In a recent survey on global energy trends, over 60% of experts believe that countries will continue to rethink their energy dependencies, driven by a mix of economic and political motivations. This change might reshape not only India’s oil strategy but also impact global oil prices and trade routes in the long run.
For more information on how trade policies shape global oil markets, you can check the latest reports from [the U.S. Energy Information Administration](https://www.eia.gov).
