The impact of US sanctions is visible in industrial oil procurement in India. As per the latest reports, Reliance Industries Ltd bought millions of barrels of oil from the Middle Eastern countries and the United States, due to the fear of disrupting oil flows.
The Indian giant is the largest importer of Russian crude oil. Accounting for 1.7 million barrels per day, making it half of the country’s total imports. The sanctions imposed on Moscow by the world’s largest economy have forced several domestic changes in India, including this one.
Various grades of oil were procured by Reliance. As per close sources, this included Iraq’s Basrah medium, Saudi Arabia’s Khafji, Al-Shaheen of Qatar, and West Texas Intermediate Crude from the US. The sources, who have refused to be identified, revealed that the cargoes containing the imports are expected to reach by December or January.
Reliance has been the biggest importer of Russian oil this year, and the biggest contributor to the trade was Rosneft PJSC, which had a long-term contract with Reliance. The shift due to sanctions is visible in Reliance’s spot purchase this month, where 10 million barrels of oil are purchased. The Middle Eastern grade is making the most of it, especially after the sanctions by the US government.
A Reliance company spokesperson stated that the company is analysing the implications of the sanctions. He further highlighted that the changing market dynamics will be reflected in the company’s purchases. Sources suggest that other companies in the Indian market are also planning to purchase oil from the Middle East, Brazil and the US.
