Indian refiners may cut Russian oil imports over US tariff threat

Indian refiners may cut purchases of Russian crude for November delivery after a US sanctions bill signed last week allows President Trump to impose tariffs of up to 100% on major buyers of Russian oil. India, the top buyer of Russia's seaborne crude, bought more than half its imports from Russia in recent months. Over the past few days processors have begun seeking alternative cargoes, sources told Bloomberg. New Delhi could limit Russian imports to 20-30% of total intake to shed its position as a top Russian oil buyer, Livemint reports citing people familiar.

Replacing Russian cargoes will be hard given volumes are far larger than Iran or Venezuela supply, and Middle Eastern grades cost several dollars more per barrel than Russian Urals, which was about $133 a barrel last week. India's total crude purchases are heading toward a record 5.4 million barrels a day as a new refinery in Rajasthan opens. India's foreign ministry said the country will prioritise energy security for its 1.4 billion people and would take all measures to protect its trade interests. The law allows tariffs within 30 days on goods from major Russian energy buyers.