Reliance Industries Ltd (RIL) has increased its crude oil purchases from the Middle East and the United States following new US sanctions on two major Russian producers, raising concerns about potential disruptions in global oil flows, news agency Bloomberg reported.
The company has reportedly bought several grades, including Saudi Arabia’s Khafji, Iraq’s Basrah Medium, Qatar’s Al-Shaheen, and US West Texas Intermediate (WTI) crude, per traders who spoke to Bloomberg. Deliveries are expected between December and January.
Reliance, India’s largest private refiner and the country’s top buyer of Russian oil this year, has been importing crude from Rosneft PJSC, one of the Russian entities targeted by the sanctions. While the company typically sources a significant portion of its supply from the Middle East, sources said its recent spot-market activity has been notably higher than usual, including some deals concluded before the sanctions were announced.
Reliance is estimated to have bought at least 10 million barrels from the spot market this month. Middle Eastern grades account for the majority of these purchases, most of which occurred after the US measures took effect.
Other Indian refiners are also active in the spot market, particularly seeking cargoes from the Middle East, the US, and Brazil, according to the sources. Crude prices strengthened on Thursday, with Oman crude rising and prompt timespreads for the regional benchmark Dubai widening. Global benchmark Brent gained over 5 per cent.
Analysts expect Russian crude flows to India to decline sharply following the sanctions on Rosneft and Lukoil PJSC, though supplies to Rosneft-backed Nayara Energy Ltd are likely to continue. Several Chinese refiners have also paused purchases as they assess the implications of the US restrictions.
