India’s Russian oil imports hit record, but analysts say US tariff impact limited

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The US Senate passed a bill on Friday allowing tariffs of up to 100% on countries such as India and China that buy Russian crude oil and natural gas. But Anindya Banerjee of Kotak Securities told ANI the move would not cause India a major economic headache. The discount on Russian crude has narrowed from $15-20 a barrel in 2022 to just $2-3 now, saving India only $2-3 billion a year against an annual oil import bill of roughly $150 billion. A prolonged rise in global crude above $100 a barrel would be a far bigger risk.

Separately, data from the Centre for Research on Energy and Clean Air shows India's Russian crude imports hit a record for the second straight month in July, at 5.5 billion euros. Russia now supplies over half of India's crude imports. The imports reached a record 2.8 million barrels per day in July, accounting for 55.5% of total crude purchases. Analysts say supply disruption is unlikely given India's diversified sourcing and strategic reserves.