Crude oil
Amid the tariff threats of Trump, India continued to buy from Russia and recently it has accelerated the purchase of crude oil from America. Due to competition, Indian refineries have increased the purchase of crude oil from America this month. This step can help reduce the country’s trade deficit with the US amid tension between the two countries. After the opening of arbitration window for American crude oil in Asia, Indian refineries as well as other Asian refineries have also increased purchases.
Apart from this, the pressure on India to buy oil from America has also increased. The US has increased the tariff on India by 50% over Russian oil imports. In such a situation, India is trying to reduce its trade deficit with America. IOC bought 5 million barrels, BPCL 2 million barrels and Reliance also bought 2 million barrels of oil from Vitol. European traders such as Ganvore, Equinor and Mercuria also sold oil to Indian companies.
India is increasing trade
Interestingly, BPCL has also purchased the Utapate crude of Nigeria for the first time, so that it can include new grades in its oil reserves. This step shows that India is adopting a strategy to buy oil from different countries to meet its energy needs. Due to cheap prices and better business relations with America, Indian refineries are now focusing on Russia as well as American oil. This will not only reduce the cost, but will also strengthen India’s position in the global market.
Increase in June quarter
India has brought a boom in purchasing crude oil from America in the June quarter. During this period, oil imports from America have increased by about 114 percent as compared to last year. In June, India ordered around 4.55 million barrels of crude oil, in which Russia’s participation was the highest, after which the US also played its role with about 8 percent stake.