India's Shift in Oil Sourcing Amid U.S. Trade Overtures
Indian refiners are avoiding purchases of Russian oil for April delivery as the U.S. and India move closer to a trade pact. This shift may be strategic to fostering economic ties with Washington, despite India being a top buyer of discounted Russian oil following the 2022 Ukraine invasion.
Indian oil refiners are currently bypassing Russian oil purchases as they gear up to receive deliveries in April, indicating a prolonged hiatus from such trades. This move aligns with growing ties between New Delhi and Washington, as both nations announced progress toward a pending trade pact expected in March.
Prominent refiners like Indian Oil, Bharat Petroleum, and Reliance Industries have paused accepting offers for Russian oil slated for March and April loading. Although some Russian oil deliveries are scheduled for March, these companies are largely refraining from new acquisitions, reshaping their sourcing strategy amid international pressures.
The statements of commitment from leaders, including President Donald Trump, underscore a diplomatic pivot. Despite Trump's suspension of 25% tariffs on Indian goods, contingent on India's commitment to reduce Russian oil imports, the nation hasn't formally declared a suspension of these imports, maintaining its strategic energy diversification approach.
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