Indian oil buyers turn to global markets as Russian supply faces new threat Report by Bloomberg

Indian refiners are urgently returning to the crude oil market in search of alternative supplies, following concerns over potential disruptions to oil flows after President Donald Trump threatened additional penalties against Russia.

State-owned Bharat Petroleum Corp. and Hindustan Petroleum Corp. are actively seeking extra supplies for May delivery from regions such as the Middle East, North Sea, and Mediterranean, according to sources familiar with the matter, Caliber.Az reports via Bloomberg.

Typically, the trading cycle for next month's deliveries is concluded by early March.

On March 30, Trump suggested that secondary tariffs could be imposed on countries buying Russian oil if President Vladimir Putin refuses to agree to a ceasefire with Ukraine. His remarks sent benchmark oil futures soaring, with West Texas Intermediate jumping 3.1% on March 31, marking the largest gain in nearly 11 weeks.

In response, Indian refiners are seeking to reduce their dependence on Russian crude by purchasing non-Russian supplies from the spot market. Traders, who requested anonymity as they are not authorized to speak publicly, confirmed receiving the tender notifications.

Since the onset of the war in Ukraine, India has become increasingly reliant on discounted Russian oil, with Moscow slashing prices to attract buyers after Western sanctions were implemented. Last month, both state and private refiners felt confident in securing the Russian crude they had requested, despite a temporary disruption caused by tighter sanctions from Washington.

Russian oil accounted for nearly 40% of India's imports in 2024, with Urals crude from western ports making up the majority of purchases. Over recent years, India has reduced its reliance on Middle Eastern and African oil due to the availability of cheaper Russian grades.

By Tamilla Hasanova