Indian state refiners are actively exploring purchases of Russia’s Urals crude oil due to widening discounts, according to sources. This inquiry comes ahead of a significant meeting between U.S. President Donald Trump and Russian President Vladimir Putin on Friday. Major state refiners such as Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd had previously paused their Russian oil purchases last month when discounts narrowed.
Currently, spot discounts for Urals crude delivered to India in October have widened to approximately $2.70 per barrel, compared to $1-$1.50 in late July, making it more cost-effective. Since 2022, India has become the largest buyer of Russian seaborne oil, particularly after Western nations reduced their imports due to sanctions following Russia’s invasion of Ukraine.
Trump has threatened sanctions on buyers of Russian oil if a peace deal is not reached, which adds to the uncertainty for Indian refiners. Bharat Petroleum aims to source up to 35% of its processing needs from Russian oil, contingent on the outcome of the Trump-Putin talks. In response to lower Russian supply, Indian refiners have also been purchasing crude from Brazil, West Africa, and the U.S.
Russian oil currently constitutes over a third of India’s total crude imports, whereas private companies like Reliance Industries and Nayara Energy have secured term contracts for Russian oil.