Biggest Indian importer replaces Russian oil with new suppliers – Bloomberg

Reliance replaces Russian supplies

According to traders, the company has purchased several grades of crude oil, including Khafji from Saudi Arabia, Basrah Medium from Iraq, and Al-Shaheen from Qatar, as well as US West Texas Intermediate. Deliveries are expected in December and January.

This year, Reliance was the largest importer of Russian oil in India. The company had been receiving crude under a long-term contract with Rosneft — one of the companies targeted by US sanctions.

India boosts spot market purchases

According to sources, in October, Reliance bought at least 10 million barrels of oil on the spot market, with most purchases coming from Middle Eastern grades. The majority of deals were made after the sanctions were introduced.

A Reliance representative declined to comment. Other Indian refineries are also actively seeking alternative oil supplies, especially from the Middle East, the US, and Brazil.

Oil prices stabilize

Following sanctions against Rosneft and Lukoil, flows of Russian oil to India may sharply decline. The exception will be Nayara Energy, which is partially controlled by Rosneft.

Meanwhile, prices for Middle Eastern grades, including Oman, have started to rise. The Brent benchmark increased by more than 5%, reflecting investors’ concerns about new market restrictions.

Oil prices stabilized on October 24 after a sharp rise the previous day. Brent futures rose by 0.2% to $66.1 per barrel.

Bloomberg sources have already reported that Russian oil flows to India, which surged after Russia invaded Ukraine, will soon fall almost to zero.

According to Reuters sources, the sanctions have prompted Chinese state oil companies to temporarily suspend purchases of Russian crude in the short term.