Indian Reliance buys millions of barrels of Gulf oil to compensate for Russia's shipments

Indian company Reliance Industries bought quantities of crude oil coming from the Middle East last week and may buy more in the coming period, suggesting that Western pressure on Russian oil flows has started to affect its buying patterns. Traders familiar with the details, who requested anonymity because they were not allowed to speak to the media, said the privately-owned refiner bought at least 2.5 million barrels, including Iraqi “Basrah Medium” crude, in addition to “Al-Shaheen” and “Qatarland” crude from Qatar. Traders explained that Reliance usually includes Middle Eastern crude in its usual mix of supplies, but the pace of its recent purchases has been more active than usual. Also Read: Trump: India has promised to stop buying Russian oil. Find alternatives to Russian oil. Traders said that in addition to its recent spate of purchases in the spot market, Reliance has contacted a large number of potential suppliers to inquire about the availability of raw materials from the region that have a quality similar to Russian oil. The company is usually the largest single buyer of Russian crude oil in India, and relies on these supplies as a mainstay of its operations. The United States continues to pressure India to limit imports of Russian oil as part of its efforts to end the war in Ukraine. US President Donald Trump said earlier this month that India had agreed to stop all purchases of Russian oil, but New Delhi did not confirm these statements. India is reducing its purchases from Moscow. Indian domestic refiners have generally indicated that they will reduce their purchases from the OPEC+ member country, but they will not stop it completely. Also Read: Indian Refineries May Cut Russian Oil Imports After Trump’s Statements. In addition to US pressure, the European Union’s ban on the import of fuel refined from Russian oil will take effect next January 21, which could affect Reliance’s exports of refined products to the bloc’s countries. Official European directives have indicated that India is included in the list of countries with which traders are advised to take additional precautions when buying petroleum products. Reliance declined to respond to a request for comment sent to it during a public holiday in India.