India’s Reliance Industries Ltd. is moving swiftly to secure crude supplies after the United States imposed sanctions on two major Russian oil producers.
The private refiner, one of Asia’s largest buyers of Russian oil, has reportedly stepped up purchases from the Middle East and the US, reflecting a shift in India’s import pattern and an effort to hedge against disruptions in Russian flows.
Reliance Industries has purchased millions of barrels of crude oil for delivery in December and January, including Saudi Arabia’s Khafji, Iraq’s Basrah Medium, and Qatar’s Al-Shaheen grades, as well as US West Texas Intermediate (WTI) crude, as per a Bloomberg report.
The transactions, most of which took place after the US announced new sanctions, mark an unusually active trading month for the Mumbai-based refiner.
India’s top refiner adjusts sourcing mix amid sanctions
Reliance has been India’s biggest importer of Russian crude this year through a long-term supply deal with Rosneft PJSC, one of the firms recently blacklisted by Washington.
While the company has historically sourced much of its oil from the Middle East, traders said the latest purchases indicate a deliberate effort to diversify feedstock as sanctions threaten established Russian trade routes.
The sanctions, which target Rosneft and Lukoil PJSC, have prompted Indian refiners to look elsewhere.
Although Reliance remains a regular buyer of Middle Eastern oil, its spot market activity this month has surged, with at least 10 million barrels acquired—most of them after the US penalties took effect.
The increase highlights India’s growing sensitivity to potential supply constraints and price volatility triggered by geopolitical developments.
Broader shift among Indian refiners
Other refiners in India are also seeking additional spot cargoes from producers in the Middle East, the US, and Brazil.
Traders said this buying interest has lifted prices for Oman crude and widened prompt timespreads for Dubai, the regional benchmark.
Global benchmark Brent rose more than 5% on Thursday as traders weighed the knock-on effects of the sanctions.
Flows of Russian oil to Indian refiners are expected to fall sharply, except for deliveries to Rosneft-backed Nayara Energy Ltd., which is likely to maintain access under existing arrangements.
The decision by Washington to target two of Russia’s largest oil firms has complicated supply chains for Asia’s biggest energy importers.
Some Chinese buyers have reportedly paused their purchases while assessing the implications of the new restrictions.
Impact on global crude markets
Reliance’s move to ramp up purchases from the Middle East and the US underscores how geopolitical tensions continue to shape energy trade flows.
India, the world’s third-largest oil consumer, relies on imports for more than 85% of its crude needs.
Any disruption to discounted Russian supplies could raise costs for domestic refiners and widen the country’s energy import bill.
The US sanctions come at a time when oil markets are already tight, with OPEC+ production limits and rising winter demand pushing up prices.
By securing multiple supply sources, Reliance aims to maintain stable refinery operations and mitigate potential price shocks.
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