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

Reliance Industries has reportedly increased its procurement of Middle Eastern crude oil, purchasing at least 2.5 million barrels last week. This shift comes as Western governments intensify pressure on India to curb the import of Russian crude, a development that could influence both the company’s operations and India’s broader energy procurement strategy. 

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

According to traders familiar with the matter the privately-held refiner bought at least 2.5 million barrels, including Iraq’s Basrah Medium, as well as Al-Shaheen and Qatar Land. These purchases mark a more vigorous approach than Reliance’s usual procurement patterns for Middle Eastern crude. While the company has historically relied on Russian oil as a key feedstock, the recent activity signals a recalibration in sourcing priorities.

In addition to the spot transactions, Reliance has also been making enquiries to a large number of potential counterparties about the availability of oil from the region of quality similar to Russian crude, the report quoted traders saying. Notably, traders reported that “the recent spurt of buying was more active than usual”.

Western nations, particularly the United States, have continued to urge India to limit Russian crude imports as part of broader efforts to address the conflict in Ukraine. Earlier this month, Donald Trump said Prime Minister Narendra Modi gave his word to the US President that India would halt all buying of Moscow’s oil till the war is over. However, New Delhi denied any such conversation. 

The report added that Indian refiners have stated that local refiners have broadly indicated they would trim — but not stop — purchases from the OPEC+ producer.

Alongside US diplomatic efforts, an impending European Union ban on imports of fuel refined from Russian crude, effective January 21, could affect Reliance’s export activities to the bloc. Official EU guidelines have highlighted India as a jurisdiction requiring additional diligence from counterparties.