India warns global oil prices could spike without sanctioned alternatives Report by Bloomberg

Indian officials have reiterated to the Trump administration that a substantial reduction in Russian oil imports by Indian refiners would only be feasible if Washington permitted the country to purchase crude from sanctioned suppliers such as Iran and Venezuela.

A delegation visiting the United States this week raised the request during meetings with American officials, according to a source familiar with the discussions who requested anonymity due to the private nature of the talks, while revealing the info to Bloomberg.

Indian representatives have stressed that simultaneously cutting off supplies from Russia, Iran, and Venezuela — key oil producers — could trigger a surge in global oil prices, according to individuals involved in the negotiations.

Requests for comment from spokespeople for India’s Commerce and Oil Ministries, as well as the US embassy in New Delhi, were not immediately answered.

The delegation’s visit follows Washington’s imposition of significant tariffs on India in response to its oil trade with Russia. Despite these penalties, India has continued importing Russian crude, though at a reduced volume.

Speaking in New York, Indian Commerce Minister Piyush Goyal said the country aims to increase purchases of American oil and gas, emphasising that “our energy security goals will have a very high element of US involvement.”

Russian crude has been discounted due to global avoidance of Moscow amid the war in Ukraine, and nearly 90% of India’s oil demand is met through imports. Lower-priced Russian barrels have helped ease India’s import costs, while Iranian and Venezuelan oil would also offer discounts if permitted.

India ceased Iranian oil imports in 2019, and Reliance Industries Ltd., the nation’s largest private refiner, stopped purchasing Venezuelan crude earlier this year as US sanctions tightened. While refiners could turn to Middle Eastern crude, it comes at a higher cost, increasing overall import expenditures.

According to the Commerce Ministry, Indian refiners paid an average of $68.90 per barrel for Russian crude in July, compared with $77.50 for Saudi oil and $74.20 for US oil. India is the largest buyer of Russian oil transported by tanker, while China leads in total Russian imports, including pipeline deliveries.

Looking ahead, the oil market is expected to face a significant surplus next year as OPEC+ and other producers increase output, a development likely to place downward pressure on global crude prices.

By Tamilla Hasanova