Indian Refiners Shift Crude Imports Away from Russia, Boost Middle East Buys to Support U.S. Trade Deal

Indian refiners are redrawing their crude oil import strategies to reduce dependence on top supplier Russia and increase purchases from the Middle East, a move that could support New Delhi’s efforts to clinch a trade deal with the United States aimed at lowering tariffs. India had emerged as the biggest buyer of discounted Russian seaborne crude after the 2022 Ukraine war, but the trade attracted criticism from Western nations, which argue that Russia’s oil revenues help fund the conflict.

The shift comes as Middle East producers, backed by higher output quotas from OPEC, keep global markets well supplied, limiting any major price impact. Refining sources said Indian refiners began scaling back Russian purchases after discussions during a government meeting intended to accelerate the U.S.-India trade deal. The oil ministry’s Petroleum Planning and Analysis Cell is also collecting weekly data on refiners’ purchases of Russian and U.S. crude, according to Reuters sources.

In the latest moves, state refiner Bharat Petroleum Corporation (BPCL) awarded one-year tenders for Iraqi Basrah and Omani crude to trader Trafigura and is seeking UAE Murban crude through a separate tender. From April, Trafigura is expected to supply four Oman crude cargoes every quarter at a discount to Dubai benchmarks, along with Basrah Medium parcels at a reduced rate to official prices, traders said. Meanwhile, refiners including HPCL, MRPL and HPCL-Mittal Energy have stopped buying Russian oil, while India has also increased crude intake from Africa, South America and the United States, and is scouting options such as Venezuelan oil.

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