India's largest oil refinery has bought millions of barrels of oil from the United States and the United Arab Emirates amid increasing pressure from Washington and European countries dissatisfied with the continued import of russian oil.
It was reported by Bloomberg, citing sources among traders.
According to the agency, the state-owned company Indian Oil Corporation has purchased at least 5 million barrels of American oil, and also received 2 million barrels of raw material from the UAE.
"We are interpreting the increased buying activity from India as a sign of diversification away from Russian supply," global crude lead at consultant Energy Aspects said.
She stressed that, despite skepticism about whether US President Donald Trump will implement his threats to impose additional tariffs on buyers of russian energy resources, physical players are unlikely to take risks by purchasing oil from russia, especially against the background of high prices.
This week (July 28-August 3), Indian Oil Corporation held several tenders for oil supplies in a row, which traders called atypical for the company and regarded as a sign of increased demand for raw materials. In addition, the company purchased 4 million barrels of West African oil and a batch of Murban from the UAE.
According to Gallarati, purchasing American oil instead of Murban for November delivery allows Indian refineries to earn USD 3 more per barrel.
"The stronger Indian buying of Atlantic Basin crude is definitely supportive of supporting (world – ed.) prices," she added.
Over the past two weeks, Indian refineries have been in the spotlight internationally after sharp criticism from the European Union and the United States for continuing to buy russian oil, which the West says is helping to finance russia's war against Ukraine.
US President Donald Trump said that, according to his information, India no longer plans to buy oil from russia.
He made this known during a conversation with journalists.
"Well, I understand that India is no longer going to be buying oil from Russia. That's what I heard. I don't know if that's right or not. That is a good step. We will see what happens," he said.
As the Ukrainian News agency earlier reported, on July 14, 2025, US President Donald Trump threatened to impose a 100% tariff on countries that buy russian oil if moscow does not reach a large-scale peace agreement with Ukraine.
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