Reliance increases procurement of Middle Eastern crude amid mounting pressure against Russian oil: Report

Reliance Industries has reportedly increased its purchases of crude oil from the Middle East, purchasing at least 2.5 million barrels last week. The shift comes as Western governments intensify pressure on India to limit imports of Russian crude oil, a development that could impact the company’s operations and India’s broader energy procurement strategy.

According to a report in Bloomberg citing traders familiar with the matter, there has been a notable rise in Reliance buying activity in the region, indicating renewed interest in sourcing alternatives to Russian supplies. The impact of these changes is important for the global crude oil market as well as for India’s role in regional energy trade.

According to traders familiar with the matter, the private refining company bought at least 2.5 million barrels, including Iraqi Basra Medium oil, as well as Al-Shaheen and Qatarland. These purchases represent a more active approach than Reliance’s usual purchasing patterns for Middle East crude. While the company has historically relied on Russian oil as a key raw material, recent activity indicates a recalibration of sourcing priorities.

The report quoted traders as saying that in addition to spot transactions, Reliance is also making inquiries to a large number of potential counterparties about the availability of oil from the region with a quality similar to Russian crude. Notably, traders reported that “the recent buying spree was more active than usual.”

Western countries, especially the United States, have continued to urge India to limit imports of Russian crude as part of broader efforts to address the conflict in Ukraine. Earlier this month, Donald Trump said that Prime Minister Narendra Modi had given his word to the US president that India would stop all purchases of Moscow’s oil until the war ended. But New Delhi denied any such conversation.

The report added that Indian refiners reported that local refineries had widely indicated that they would reduce – but not stop – purchases from the OPEC+ product.

In addition to US diplomatic efforts, the imminent ban imposed by the European Union on imports of fuel refined from Russian crude, effective January 21, may affect Reliance’s export activities to the Union. Official EU guidelines have highlighted India as a jurisdiction that requires increased diligence from counterparties.