Reliance in India Purchases 6 Million Barrels of Russian Oil for March

• Reliance bought Russian Urals crude at prices ranging from a $1 discount to a $1 premium versus dated Brent
• Indian refiners have purchased millions of barrels of prompt cargoes stranded at sea following the U.S. sanctions waiver granted last week
• India imports about 40% of its oil from the Middle East and was the top buyer of Russian seaborne crude after the 2022 Ukraine invasion, though purchases began declining in January

Summary

India's Reliance Industries Ltd has purchased at least 6 million barrels of Russian oil for March delivery, following supply disruptions from the Middle East due to the Iran war, according to industry sources.

Key Details:

• The purchase comes after Washington granted New Delhi a 30-day exemption from sanctions for cargoes loaded on vessels as of March 5
• Indian refiners have been buying millions of barrels of prompt cargoes stranded at sea during this exemption period
• Reliance acquired Russian Urals crude at prices ranging from a $1 discount to a $1 premium versus dated Brent
• The company did not respond to requests for comment

Market Context:

India is the world's third-largest oil importer, sourcing approximately 40% of its oil from the Middle East. The country became the top buyer of Russian seaborne crude following Moscow's 2022 invasion of Ukraine. However, Indian refiners began reducing Russian crude purchases in January before this latest procurement.

Market Implications:

The transaction highlights India's continued reliance on discounted Russian oil to meet energy needs, particularly when traditional Middle Eastern supplies face disruption. The U.S. sanctions exemption provides temporary relief for Indian refiners seeking alternative crude sources. This development demonstrates how geopolitical tensions and sanctions policy continue to reshape global oil trade flows, with India maintaining flexibility in its sourcing strategy to ensure energy security while navigating complex international relations.

The purchase underscores the ongoing volatility in global energy markets as geopolitical conflicts impact traditional supply routes and buyer-seller relationships.