Reliance boosts Middle Eastern crude purchases amid Western pressure
What's the story
Reliance Industries Ltd (RIL), one of India's leading private refineries, has stepped up its purchases of Middle Eastern crude oil. The company bought at least 2.5 million barrels last week, including Basrah Medium from Iraq and Al-Shaheen and Qatar Land, according to Bloomberg. This shift in procurement patterns comes amid growing Western pressure against Russian oil imports.
Procurement shift
Shift in procurement patterns
The recent surge in crude purchases by Reliance is higher than its usual activity. The company has also been reaching out to several potential suppliers for oil from the region that matches the quality of Russian crude. This comes as Reliance has been India's biggest single buyer of Moscow's crude, a key part of its operations.
International influence
US urges India to reduce Russian oil imports
The US has been urging India to reduce its imports of Russian crude oil, as part of efforts to end the ongoing war in Ukraine. Earlier this month, a US official claimed that India had agreed to stop all purchases of Moscow's oil. However, New Delhi did not confirm this statement. Meanwhile, a European Union ban on imports of fuel made from Russian crude is set to come into force soon.
Export implications
Potential impact of EU ban on Reliance's exports
The EU ban could affect Reliance's exports of refined products to the bloc. Official guidelines have identified India as a country that counterparties should be extra cautious with. The changes in procurement patterns and potential export impacts highlight the complex global dynamics influencing India's oil industry amid geopolitical tensions.