Indian corporation Reliance Industries Ltd. has made significant purchases of crude oil from Middle Eastern countries and the United States. This move is a response to the sanctions imposed by the USA against Russian energy companies “Rosneft” and “Lukoil.”
This is reported by Finway
Reliance Redirects Imports Following US Sanctions
New shipments of oil are expected to arrive in India in December or January. According to traders who wished to remain anonymous, the pace of purchases increased specifically after the announcement of American sanctions against Russian oil giants.
“Reliance was the largest importer of Russian oil in India by volume this year. It purchased crude oil under a long-term contract with ‘Rosneft,’ – notes Bloomberg”.
Increase in Middle Eastern Oil Supplies
Although Reliance has previously sourced oil from the Middle East, traders report that volumes have significantly increased recently. This is particularly true for operations at the beginning of the week, when active purchases were made even before the imposition of American restrictions. In October, the company acquired at least 10 million barrels of crude oil on the spot market, with the majority of this crude coming from the Middle East, and most of these transactions occurred after the introduction of US sanctions.
Analysts predict a noticeable reduction in the supply of Russian oil to major Indian refineries due to sanctions against “Rosneft” and “Lukoil.” The only exception may be Nayara Energy Ltd., where “Rosneft” holds a stake in the company.