Mukesh Ambani, the owner of the world’s largest oil refiner, has changed his tactics regarding the supply of crude oil. This means that now Reliance Industries has started supplying less Russian oil and more supply from the middle. Last week’s figures tell a similar story. The special thing is that in the coming days, the supply to Reliance from the Middle East may increase slightly. It is clear that on one hand Trump’s tariffs have started showing their effect. On the other hand, the pressure from Europe, Reliance’s biggest market, is also clearly visible. Because of which the oil buying pattern of Reliance is clearly visible.
Increased supply from Middle East
Bloomberg’s report quoted unnamed people as saying that Mukesh Ambani’s refinery has purchased at least 2.5 million barrels of oil from Iraq’s Basra Medium, Al-Shaheen and Qatar Land. Experts said that among the general needs of Reliance, crude oil is supplied from the Middle East, but recently more crude oil has been purchased from the Middle East. According to Bloomberg report, Reliance Industries is also making inquiries regarding the quality of Middle East oil. Which is an indication that in the coming days, there may be an increase in the supply from the Middle East for Reliance. The company has generally been the largest buyer of Moscow crude oil in India.
Pressure from America and Europe
As part of efforts to end the war in Ukraine, the US is pressuring India to curb imports of Russian crude oil. Earlier this month, President Donald Trump said the South Asian country had agreed to stop all oil purchases from Moscow. However, New Delhi did not confirm his comments. Local refineries have broadly indicated that they will buy less oil from Russia – but not stop. Apart from the US steps, the EU ban on imports of fuel made from Russian crude is set to come into effect from January 21, which could potentially impact Reliance’s exports of refined products to the EU. Official guidelines have named India as a country with which other countries should exercise extra caution. However, no official statement has been given by Reliance Industries.
Big fall in crude oil prices
On the other hand, there has been a big decline in the prices of crude oil in the international market. Since September 26, there has been a decline of more than 13 percent in the prices of Brent crude oil. According to the data, on September 26, the price of Brent crude oil of Gulf countries was $ 70.13 per barrel, which has come down to $ 60.58 per barrel on October 21. This means that the prices of crude oil in Gulf countries have seen a decline of about $10 per barrel. On the other hand, American crude oil prices have also fallen by about 14 percent since September 26. On September 26, the price of American crude oil was $ 65.72 per barrel, which has currently reached $ 56.61 per barrel.