Reliance shifts gears: Boosts oil purchases from Middle East amidst US pressure to cut Russian imports
New Delhi (The Uttam Hindu): Reliance Industries has significantly increased its crude oil purchases from the Middle East. A report claims that the company purchased at least 2.5 million barrels of oil last week. This significant change comes at a time when the United States is increasingly pressuring India to curb Russian crude oil imports. This move could impact the company's operations and India's energy strategy.
The Bloomberg report, citing traders, said this is a significant increase in Reliance's purchasing activity in the Middle East region, which is seen as an alternative to Russian supplies. This shift will have a profound impact on the global crude oil market as well as India's role.
According to the report, the private refinery company has purchased at least 2.5 million barrels of oil from Iraq's Basra Medium, Al-Shaheen, and Qatar Land. These purchases represent a more active approach than Reliance's usual purchasing pattern for Middle East crude.
Reliance has previously relied heavily on Russian oil, but recent increased purchases from the Middle East indicate a shift in strategy. The report cited traders as saying that in addition to these spot deals, Reliance is also receiving a large number of inquiries about the availability of oil from other regions with similar quality to Russian crude. Traders noted that the recent surge in purchases has been much higher than normal.
It is worth noting that the US is repeatedly pressuring India and China not to buy Russian oil. The US has even imposed an additional 25 percent tariff on India for purchasing Russian oil.
Earlier this month, US President Donald Trump claimed that Prime Minister Narendra Modi had promised him that India would stop all oil purchases from Moscow until the war ended. However, New Delhi has categorically denied any such talks.
The report said Indian refiners have broadly indicated that they will reduce purchases from the OPEC+ producer (Russia), but will not stop it completely.