Reliance’s annual report also outlines mounting risks for the energy sector, citing OPEC decisions and rising geopolitical tensions.
Reliance Industries said that ongoing geopolitical tensions and the uncertainty around tariffs could disrupt trade flows and impact the overall demand-supply balance, in its annual report on Thursday.
The Indian conglomerate stated that while changing sanctions and trade tariffs will play a role in global crude oil price volatility, geopolitical tensions in the Middle East, along with changes in key shipping routes, and production decisions by both OPEC+ and non-OPEC members, will also continue to affect prices.
Adding to this are regional capacity additions, shifting supply-demand trends in the downstream sector, and the pace of economic recovery in China.
At the time of writing, the West Texas Intermediate (WTI) Crude was up 0.81% at $64.87 per barrel.
Reliance shares were down over 1% to ₹1,377.5. Meanwhile, shares of ONGC, BPCL and IOC were down between 0.5% and 2%, reflecting broader market sentiment.
Tariff Hiked For Buying Russian Oil
On Wednesday, US President Donald Trump doubled tariffs on Indian exports to 50%, primarily due to India’s continued purchase of Russian oil. The additional tariffs come into effect on August 27.
Since the Russia-Ukraine war began in 2022, India has ramped up its purchase of Russian oil, as it was sold at a discount following sanctions by Western countries. Russian oil accounts for about 35% of India’s overall supplies, up from less than 2% before the war began.
Trump blamed India for indirectly supporting the war by buying oil from Russia.
In a post on Truth Social earlier this week, Trump claimed India is purchasing large volumes of Russian oil and reselling it on the open market “for big profits.”
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” he wrote. “Because of this, I will be substantially raising the Tariff paid by India to the USA.”
However, India has stood firm, calling the tariffs “unjustified and unreasonable” and stating that the country will act to safeguard its national interests. And in a veiled response to Trump’s tariff threats, Prime Minister Narendra Modi reiterated that India would never compromise on the interests of the farmers.
Reports indicate that while Indian state refiners buy Russian oil from traders, private refiners Nayara Energy and Reliance Industries have long-term supply deals with Rosneft. Losing access to Russian crude oil would put a tight squeeze on margins for Indian oil marketing companies.
What Is The Retail Mood?
Retail sentiment remained ‘bearish’ on Stocktwits for Reliance Industries. It was ‘bullish’ a month ago.
Reliance shares have risen 13.3% year-to-date (YTD).
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