The BRICS TimesReports indicate Reliance Industries, India’s top buyer of discounted Russian oil, is considering reducing or halting its crude imports.
Crude Prices Jump on US Action
Crude oil prices rose sharply after two major developments. These included new US sanctions on key Moscow-based oil firms. Reports of Indian oil companies reviewing cheap Russian crude purchases also contributed. Reuters reported a nearly 3% increase in crude oil costs on Thursday.
The US is pressuring Russia to halt the conflict in Ukraine. Therefore, America imposed sanctions on two major Russian producers, Rosneft and Lukoil. Following this move, Indian refiners are rethinking their plans for cheap oil from Moscow. The current situation highlights the significant geopolitical impact on the global crude oil market.
Global Oil Futures Show Uptick
Brent crude futures climbed by $2.12, a significant 3.4% rise, to reach $64.71 per barrel. Similarly, the US West Texas Intermediate (WTI) saw a 3.6% jump, an increase of $2.09, settling at $60.59 per barrel. Since 2022, India has been a major buyer of Russian crude oil. Imports averaged about 1.7 million barrels daily during the first nine months of this year.
Reliance Industries Weighs Import Reduction
The reports suggest that Reliance Industries, the largest Indian importer of discounted Russian oil, is mulling over cutting down or stopping its imports. However, most Indian state-owned oil companies buy Russian oil via intermediaries. This approach will likely limit the direct impact of the sanctions.
US Issues New Warning and EU Action
The US warned of further action if Moscow does not agree to a ceasefire. Last week, Britain also sanctioned Rosneft and Lukoil. Furthermore, the European Union approved its 19th sanctions package. This package includes a complete ban on Russian LNG imports. Yet, market experts suggest this spike in crude oil prices might not last long.
