Indian refiners are considering reducing purchases of Russian crude for November deliveries as the risk of tougher US trade measures increases. Reports from September 21 said major processors have begun exploring alternative cargoes, although replacing Russian supplies could prove difficult because of higher prices and tight global availability.
US President Donald Trump signed a new Russia-Iran sanctions law last week that gives him the authority to impose tariffs of up to 100% on countries purchasing Russian oil and gas. India is currently examining the potential implications of the new US tariff powers. New Delhi has said it will take necessary measures to protect its trade and economic interests while maintaining energy security.
Indian state-owned refiners have already secured much of their Russian crude requirements for September and October. The bigger uncertainty is emerging around November and later purchases, when the next buying cycle begins. Industry sources say alternative crude grades may cost more, adding pressure on refinery margins.
India has relied heavily on discounted Russian crude in recent years, while also increasing purchases from suppliers including the US, Brazil, Canada, Venezuela and Africa. The latest developments could push refiners to diversify further, depending on Washington’s implementation of the tariff powers and global oil-market conditions.
