Indian Oil to Reliance go easy on Russia crude oil as 50% US tariffs loom

The reduction, and not a pause, in India's Russian crude oil purchases is a signal that New Delhi has no plans to sever ties with Moscow.

Indian refiners, including Indian Oil Corp. Ltd. and Reliance Industries Ltd., are planning to trim their purchases in the coming weeks, a modest concession to Washington’s hawks less than a day ahead of a hike in US tariffs, but also a signal that the country has no plans to sever ties with Moscow.

Three of the world’s largest oil consumers will release crude from its Strategic Petroleum Reserve.  (Reuters)

The companies are expected to buy 1.4 million-to-1.6 million barrels a day for October loading and beyond, said people with knowledge of the matter who asked not to be identified because they’re not authorized to speak publicly. That compares with an average of 1.8 million barrels a day in the first half of the year.

The Trump administration, eager to reduce a trade deficit with India, has amped up pressure on the country’s energy trade with Russia. That includes a doubling of US tariffs, due to take effect on Wednesday.

Volumes may change if India reaches a trade deal with Trump and US eases pressure on India for funding Russia’s war with Ukraine, the people said.

Spokespeople for India’s oil ministry, Reliance, Nayara Energy Ltd., and state-run refiners Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. didn’t immediately respond to emails seeking comment.

US administration officials have since dialed up the volume with their own public criticism, homing in on the country’s energy tycoons.

The US Department of Homeland Security issued a draft notice on Monday to double tariffs on Indian imports to 50% on Aug. 27.