https://img.etimg.com/thumb/msid-124752710,width-1200,height-630,imgsize-30528,overlay-etmarkets/articleshow.jpg
According to traders familiar with the matter, RIL recently bought at least 2.5 million barrels of crude from the Middle East, including Iraq’s Basrah Medium, Al-Shaheen, and Qatar Land grades. While Reliance’s refinery operations regularly include Middle Eastern oil, the volume and timing of this latest purchase have drawn attention, as it comes amidst growing Western pressure on India to reduce its reliance on Russian energy supplies.
The surge in Middle Eastern crude procurement is accompanied by increased enquiries by Reliance to multiple potential suppliers regarding availability of oil similar in quality to Russian crude. The company has historically been the largest Indian buyer of Moscow’s crude, using it as a core input for its massive refining operations.
The shift in procurement activity coincides with ongoing diplomatic efforts by the United States to influence India’s crude import patterns as part of broader efforts to isolate Russia over its actions in Ukraine. Earlier this month, U.S. President Donald Trump claimed that India had agreed to halt Russian oil purchases entirely—though no such confirmation was provided by Indian officials.
Nonetheless, Indian refiners have reportedly indicated a willingness to reduce, but not eliminate, Russian crude intake.
Adding to the pressure, a European Union ban on imports of fuel refined from Russian crude is set to take effect on January 21. This could significantly impact Reliance’s export potential to European markets, where the company has a notable presence.EU guidelines have specifically identified India as a country requiring additional scrutiny when sourcing refined fuels, a factor that could influence future procurement and export strategies.Also read: HUL Q2 Preview: Profit may fall 5% YoY as GST transition, weak demand to hit earnings
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
