Indian refiners have rushed back to the market to seek crude supply after President Donald Trump's threat of more penalties against Russia raised concerns over potential disruptions to oil flows.
State-owned Bharat Petroleum Corp. and Hindustan Petroleum Corp. are seeking additional supplies for May arrival from regions such as the Middle East, North Sea and Mediterranean, said people familiar with the matter. The trading cycle for barrels delivered next month is typically concluded in early March.
On Sunday, Trump raised the prospect of so-called secondary tariffs on buyers of Russian oil if President Vladimir Putin refused a ceasefire with Ukraine. The comments drove benchmark futures higher, with West Texas Intermediate surging 3.1% on Monday, the biggest gain in almost 11 weeks.
The Indian refiners are seeking non-Russian supplies from the spot market to reduce their reliance on the OPEC+ member following Trump's threat, said traders who received the tender notifications, asking not to be identified because they are not authorized to speak publicly.
Spokespeople for BPCL and HPCL didn't immediately respond to messages seeking comment.
India has been highly reliant on cheaper Russian supplies since the war in Ukraine after Moscow began slashing offer prices to entice buyers following the rollout of western sanctions. Last month, both state and private refiners were confident in their ability to get all the Russian crude they had sought, after a brief hiatus caused by harsher sanctions from Washington.
Russia-to-India flows made up almost 40% of imports by the Asian nation in 2024, with Urals from western ports forming the bulk of purchases. India has reduced its reliance on Middle Eastern as well as African supplies in recent years due to its access to the cheaper Russian grades.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
