Indian state refiners have recently halted purchases of Russian oil. This shift comes as the discounts on Russian crude have decreased. Additionally, US President Donald Trump has warned against buying oil from Moscow.
India stands as the world’s third-largest oil importer and is heavily reliant on imported crude. Major state refiners like Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Mangalore Refinery and Petrochemical Limited have paused their Russian oil purchases over the past week. Sources familiar with the situation indicated that they have not sought any new deals during this time.
Interestingly, these refiners typically buy Russian oil for delivery, but they are now exploring other options in the spot markets. They are likely turning to Middle Eastern grades like Abu Dhabi’s Murban crude and some from West Africa to make up for the shortfall.
Private companies, such as Reliance Industries and Nayara Energy, remain significant buyers of Russian oil. Yet, state-run refiners control more than 60% of India’s refining capacity, which totals around 5.2 million barrels per day.
In a noteworthy development, Trump has threatened to impose 100% tariffs on nations that continue to purchase Russian oil unless there is a significant peace agreement regarding Ukraine. According to recent reports, his administration’s tough stance has started to influence global oil dynamics.
Historically, this isn’t the first time oil politics have impacted global relations. For decades, oil has been a pivotal factor in international diplomacy. Countries often find themselves navigating complex alliances and decisions based on oil supplies and pricing.
As India reevaluates its energy imports, public reaction is mixed. Many support the shift towards more stable suppliers, while others are concerned about potential price increases in local markets. This transformation highlights the broader implications of geopolitical influences on energy security and pricing.
For more insights on the global oil market, check reputable sources like the International Energy Agency or follow developments on financial news platforms.
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India halts Russian oil purchases ahead of Trump
