Indian refiners are reshaping their crude import strategies by reducing dependence on Russia and increasing purchases from the Middle East, a shift that could support New Delhi’s efforts to secure a trade agreement with the United States and ease tariff barriers.

India emerged as the largest buyer of discounted Russian seaborne crude after the outbreak of the Ukraine conflict in 2022. However, the trade attracted criticism from Western nations, which argued that Russia’s oil revenues were helping to finance the war. The current shift comes as Middle Eastern producers, backed by higher production quotas from the Organization of the Petroleum Exporting Countries, maintain ample global supply, limiting the impact on international oil prices.

Indian refiners have begun scaling back Russian oil purchases following discussions at a government meeting aimed at accelerating a US–India trade deal, according to industry sources. The Petroleum Planning and Analysis Cell under the oil ministry is monitoring weekly data on crude purchases from Russia and the United States to assess evolving procurement patterns.

In a recent development, state-run Bharat Petroleum Corporation Limited awarded one-year tenders to procure Iraqi Basrah and Omani crude to Trafigura and has also entered the market to purchase Murban crude from the United Arab Emirates under a separate tender. From April, Trafigura is expected to supply four cargoes of Oman crude each quarter at a discount of 75 cents per barrel below Dubai benchmarks, along with one cargo of Basrah Medium at a discount of 40 cents per barrel to its official selling price.

The recalibration of crude sourcing reflects India’s broader effort to balance geopolitical considerations, trade negotiations and energy security while maintaining cost-efficient imports. With Middle Eastern producers increasing output and diversifying supply routes, Indian refiners are positioning themselves to manage price volatility and strengthen strategic partnerships in global energy markets.