Indian refiners, currently eyeing deliveries for the month of November, could cut back purchases of crude shipments from Russia after a sweeping US sanctions bill was signed into law, raising the threat of fresh punitive tariffs.
The world’s third-biggest crude buyer bought more than half of its imports from Russia in some recent months, in an effort to counter high prices and continued disruption in flows from the Middle East. Over the past few days, however, the top processors have begun to look seriously for alternative cargoes, according to people involved in the discussions. They asked not to be named as the conversations are not public.
New Delhi could limit Russian crude imports in the near term to 20% to 30% of India’s total in order to shed its position as the top buyer of Moscow’s seaborne oil, the people said. Meanwhile, it will continue to negotiate with the US.
Also Read: Oil snaps 4-day fall, hovers near $101 on potential US-Iran talk. What’s next?
The new US legislation, signed into law last week, allows President Donald Trump to impose tariffs on countries that purchase Russian crude — a list that includes India, an economy was already been on the receiving end of similar levies last year. Those were later lifted.
