“Indian refineries refuse to buy Russian oil due to Trump’s pressure – mediaIndian state-owned oil refineries are suspending spot purchases of Russian crude oil. This comes amid increased pressure from
Washington and the imposition of tariffs on Indian exports.
”, — write: unn.ua
DetailsCompanies including Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. plan to forgo spot crude oil purchases in the upcoming purchasing cycle until clear government guidance is provided, sources said, who asked not to be named because they are not authorized to speak publicly. On Thursday, IOC purchased five million barrels of oil from the US, Brazil, and Libya, the latest step in a series of purchases for relatively quick delivery.
The global oil market has focused on India’s crude oil purchases after President Donald Trump doubled tariffs on all Indian exports to the US as direct punishment for the country’s refineries buying Russian crude oil. The escalation, which has not yet been accompanied by similar actions against China, another major buyer, is aimed at pressuring Moscow to end the war in Ukraine.
India called Trump’s new tariffs “unfair, unjustified, and unreasonable”06.08.25, 18:49 • 3836 views
The publication emphasizes that this week, tensions have changed futures prices as traders assess the likelihood of flow disruptions, as well as Moscow’s ability to find alternative buyers if Indian refineries decide to buy fewer barrels. On Thursday, Brent oil prices were almost unchanged, at around $67 per barrel, after a five-day decline.
AddendumOfficially, New Delhi has not given any instructions to refineries to stop buying Moscow’s oil, and Prime Minister Narendra Modi’s government is resisting Trump’s tariffs. Earlier, Bloomberg reported that refineries were asked to develop plans to buy non-Russian crude oil.
A spokesman for the Ministry of Oil did not immediately respond to an email requesting comment. Separately, IOC, BPCL, and HPCL did not respond to messages from Bloomberg requesting comment.
Trump’s tariffs for India spoil Modi’s calculations on Russian oil: Bloomberg clarified the situation07.08.25, 10:55 • 2652 views
Beyond term contracts, oil producers and refineries typically make purchases in short-term cycles, with cargoes booked approximately one and a half to two months before loading. Such a planned schedule allows users to ensure they have sufficient inventory to meet their needs.
They added that the pause would affect the purchase of Russian Urals cargoes for October loading.
While overall purchases of October Urals oil by Indian refineries are unlikely to fall to zero, the drop could cause a rush for other grades, with alternatives from the US, the Middle East, and Africa, say traders who buy and sell across the region. Negotiations for October cargoes have not yet begun, although traders anticipate larger discounts from Russia and more offers from China, which typically does not choose much of this assortment.
At the end of July, purchases of September Urals oil were completed, and India took fewer barrels due to expensive offers. Since then, state-owned refineries have announced a series of tenders, absorbing spot cargoes from other regions. Meanwhile, private refining companies Reliance Industries Ltd. and Nayara Energy Ltd. remain silent, with the latter facing a sharp decline in refining rates after sanctions imposed by the European Union.
Urals cargoes — Russia’s benchmark crude oil grade from the west of the country — for loading in August and September are likely to be delivered as planned, unless New Delhi advises otherwise, sources said. In recent days, tankers have unloaded some cargoes at Indian ports, albeit with minor delays. At its peak, India imported over 2 million barrels of Russian oil per day, compared to almost zero purchases before the war in Ukraine.