India Seeks Alternatives to Russian Oil Due to US Tariff Threats
India, the world's third-largest buyer of crude oil, has begun seeking alternative sources of oil due to the threat of new U.S. sanctions. Imports from Russia fell to 1.9 million barrels per day in September, the lowest level since April. A new U.S. law allows for tariffs of up to 100% on countries purchasing Russian oil, including India. Indian refiners are facing difficulties in replacing Russian shipments due to high prices and volumes. At the end of last week, the price of Russian Urals oil was around $133 per barrel, while Middle Eastern grades were more expensive. India needs more oil for a new refinery in Rajasthan and for expanding existing plants, which is increasing purchases to a record 5.4 million barrels per day. Negotiations for new supplies are expected to begin in the last week of the month. Indian authorities stated that oil purchases are necessary to provide energy for 1.4 billion people, despite pressure from Washington. The U.S. tariff law was signed on September 19 and also includes sanctions against countries that help Russia evade sanctions.
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