India’s state-owned refiners, which paused Russian crude buying a few weeks ago, have now started to inquire traders about potential purchases of the flagship Russian crude Urals, sources familiar with the development told Reuters on Thursday.
The biggest Indian state-owned refiners have pulled out of spot purchases of Russian crude for cargoes loading in October, after the U.S. announced an additional 25% tariff on India over its imports of crude from Russia.
U.S. President Donald Trump signed an executive order enacting an additional 25% tariff on Indian goods, explicitly targeting India’s ongoing imports of Russian crude oil. The overall 50% tariff on Indian goods will take effect 21 days after August 6.
Ahead of the highly anticipated meeting on Ukraine between President Trump and Vladimir Putin on Friday, India’s state refiners are back inquiring about Urals purchases, as discounts for spot Urals supply have widened to about $2.70 per barrel from $1-$1.50 per barrel at the end of July, according to Reuters’ sources.
“We will wait for the outcome of Trump-Putin talks that will give us some indications,” one source told Reuters.
The world’s third-largest crude oil importer, India, has significantly boosted Russian oil imports since 2022, when Russia’s oil was banned in the West. Russia currently accounts for about a third of India’s oil purchases, becoming the single largest crude supplier to India.
Meanwhile, Indian state-owned refiners have secured on the spot market at least 22 million barrels in non-Russian crude for delivery in September and October, due to the tariff threat.
In one of the latest trades, state refiner Bharat Petroleum Corporation Limited (BPCL) will buy 10 million barrels of crude from the United States in a five-month tender awarded to trading and mining giant Glencore, sources familiar with the plan told Reuters.
India is looking to increase its energy purchases from the U.S. as it is negotiating a trade deal and still hopes to avoid steep tariffs.
By Charles Kennedy for Oilprice.com
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