Indian refiners may cut Russian crude oil imports amid US tariff threats
Imports from Russia have already eased and may average about 1.9 million barrels a day in September — more than 35% of the total and the lowest since April, according to Kpler
Indian refiners may reduce their purchases of Russian crude oil in response to US sanctions, according to sources. The United States recently passed a bill that could lead to fresh tariffs on Russian oil imports, including those from India. India, the world's third-largest crude buyer, currently imports more than half of its oil from Russia, in an effort to counter high prices and Middle East supply disruptions.
However, Indian refiners are reportedly exploring alternative sources for their crude shipments, as the new US law empowers President Donald Trump to impose tariffs on countries that purchase Russian crude, including India. Russian oil currently accounts for about 35 percent of India's imports, with the lowest levels in nine months expected in September.
While Russia's Urals crude costs about $133 per barrel, Middle Eastern grades are more expensive. With global crude markets already strained due to reduced Persian Gulf exports, replacing Russian crude may prove challenging. India is under pressure to secure more oil as new refineries and expansions increase demand to a projected record 5.4 million barrels a day.
Talks to purchase Russian crude for November delivery are expected to commence in the final week of this month, putting the next buying cycle within the period of uncertainty.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
