India's Largest Importer Has Found A Substitute For Russian Oil

After the imposition of U.S. sanctions.

India's Reliance Industries Corporation has purchased millions of barrels of oil from the Middle East and the United States after U.S. sanctions were imposed on two Russian producers.

This was reported by Bloomberg.

Reliance is replacing supplies from Russia

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

Reliance has been India's largest importer of Russian crude this year. The company received crude under a long-term contract with Rosneft, one of the companies hit by US sanctions.

India increases spot market purchases

Sources said Reliance bought at least 10 million barrels of crude on the spot market in October, with the bulk of the purchases coming from Middle Eastern grades. Most of the deals were already done after the sanctions were imposed.

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

Oil prices have stabilized

After sanctions against Rosneft and Lukoil, Russian oil flows to India could fall sharply. The exception will be Nayara Energy, partially controlled by Rosneft.

In the meantime, prices for Middle Eastern grades, including Oman, have started to rise. The exchange-traded benchmark Brent rose more than 5 percent, reflecting investor concerns about new restrictions on the market.

At the same time, oil prices stabilized on October 24 after a sharp rise the previous day. Brent crude futures rose 0.2% to 66.1 dollars per barrel.

Sources Bloomberg have already reported that Russian oil flows to India, which surged after Russia's invasion of Ukraine, will soon shrink to almost zero.

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