Oil -Raffineries do not see the offer risk even if Trump Russian rough target

Copyright © HT Digital Streams Limit all rights reserved. An immediate distraction from Russian crude oil is not expected, as the shrinking discount purchases have collected, people on condition of anonymity said. (AFP) Summary discounts on Russian oil have shrunk and India’s crude import basket is well diversified, says Indian Oil Refiners after Trump announced an unspecified fine. New Delhi: India’s oil refiners see no risk for well-diversified crude supplies after US President Donald Trump imposed a fine on the country because he bought Russian crude oil, in addition to a 25%tariff, according to two people in the Know. An immediate distraction from Russian crude oil is not expected, as the shrinking discount purchases have collected, people on condition of anonymity said. The Petroleum Ministry is confident that supplies would not be a problem for India, as the import basket was diversified with 40 countries exporting oil to the country, they said. ‘Currently, the government and the oil refineries are in a guard-and-watch mode. There is a hope that the bilateral trade conversations would end on a favorable note and the high rate could fall, “said an official with a state -run refinery. “From now on, there has been no decision to stop the import of Russian oil and the government has not been given such an order.” The US president imposed 25% rates on the Indian exports to the world’s largest economy on August 1. The decision came even when the two countries negotiated over a bilateral trade agreement. In addition, Trump announced an unspecified fine on India for the purchase of Russian crude and defense equipment. Moscow is under Western sanctions for his invasion of Ukraine. Russia remained India’s best crude supplier during the first half of 2025, with consignments of an average of 1.67 million barrels per day (BPD), slightly higher of 1.66 million PK a year earlier. If the need arises to distract from Russian oil, there are sufficient oil supplies from other countries, as Indian refineries have diversified their import basket to about 40 countries, the second person quoted earlier said. Inquiries were sent by e -mail to the Union Ministry of Petroleum and Natural Gas, Indian Oil Corp., Bharat Petroleum Corp., Hindustan Petroleum Corp., Reliance Industries Ltd and Nayara Industries remained unanswered until per time. “Countries in Western Asia and South America would be willing and even compete to deliver oil to India. For Indian refineries, it is not a technical problem to move to different refineries,” said Deepak Mahurkar, leader, oil and gas, PwC India. “Thus, if necessary, raising imports from other sources should not be concern.” Western Asian countries, including Iraq, Saudi Arabia, Kuwait and the United Arab Emirates (UAE), produce about 45-50% of India’s total oil imports. Iraq and Saudi Arabia are the second and third largest suppliers to Russia. The organization of the countries of the Petroleum Exporting Countries (OPEC) has also increased their supplies. Rough can become more expensive, although it is unlikely to be affected, prices in the global market can rise and for the rough variety that will replace Russian offer if the solid rates are imposed for a long time. Russian oil occupies 7% of global oil consumption, and keeping it away from the market can have a huge impact on prices according to sector experts. Supplies would not be a concern for India, given its diversified sources, but the potential impact of reducing Russian oil from the international market would be a significant increase in international oil prices, says Prashant Vasisht, senior vice president and co-group head, corporate ratings, at the rise of Olie Prices of ICRA LTD. India imported crude oil worth $ 137 billion in FY25. Imports are expected to rise as the international energy agency would be the primary driver of global growth in oil demand until 2030. Note that it is too early to comment on the economic impact of the tariff announcement, Madan Sabnavis, chief economist of Bank of Baroda, said the import bill may not hit significantly as oil prices offer to low prices worldwide. “India may not want to stop purchases from Russia. It could increase imports from other countries, and world prices are also low at the moment. Many also depend on how the US trade appears with other countries,” Sabnavis said. “There may be spines in oil prices, as announcements are presented on rates and trade transactions, but a large increase in prices for the long -term is not expected now.” India has already increased its imports from the US after the two countries promised to take bilateral energy trade to $ 20 billion. According to S&P Global Commodity Insights, India imported nearly 271,000 hp crude oil from the US in the January-June-June 2025, an increase of 51% versus a year earlier. Meanwhile, according to Pronob Sen, the former head statistician, Trump’s 25% rates may be a bargaining tactic to bring about a favorable trade agreement for the US, and the rates may fall when the agreement is finalized. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. 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