Wedoany.com Report-Oct. 27, India’s Reliance Industries Ltd. has increased purchases of crude from the Middle East and the US following recent US sanctions on two Russian oil producers, raising concerns about potential supply adjustments. Traders familiar with the matter said the private refiner bought several grades, including Saudi Arabia’s Khafji, Iraq’s Basrah Medium, Qatar’s Al-Shaheen, and US West Texas Intermediate. Cargoes are expected to arrive in December or January.

India's Reliance Industries Ltd. has bought millions of barrels of crude from the Middle East and United States after Washington sanctioned two Russian producers.

Reliance has been India’s largest importer of Russian oil this year through a long-term contract with Rosneft PJSC, one of the sanctioned companies. While the company regularly sources Middle Eastern crude, traders noted that its recent buying, including transactions before the sanctions, has been unusually active. Overall, Reliance purchased at least 10 million barrels from the spot market this month, with Middle Eastern grades representing the majority, most acquired after the US penalties.

A company spokesperson said on Friday that Reliance is evaluating the effects of sanctions on Russian crude flows and the export of refined products to Europe. “Our supply contracts will evolve to reflect changing market and regulatory conditions,” the spokesperson said. “Our diversified crude-sourcing strategy will ensure reliability in operations.”

Other Indian refiners are also actively seeking spot cargoes, particularly from the Middle East, the US, and Brazil, traders said. Prices for Oman crude strengthened on Thursday, while prompt timespreads for the regional benchmark Dubai rose. Global benchmark Brent crude surged over 5% following the sanctions announcement.

Flows of Russian crude to major Indian refiners are expected to decline sharply after sanctions on Rosneft and Lukoil PJSC, with the potential exception of Rosneft-backed Nayara Energy Ltd. Some Chinese companies have temporarily paused Russian oil purchases as they assess the impact of US penalties.