According to a Bloomberg report, Indian refiners are now buying Russian Urals crude at deeper discounts of $3–$4 per barrel to Brent for cargoes loading in late September and October. The discounts have widened from about $2.50 last week and $1 in July, making Russian oil increasingly attractive despite mounting US pressure on New Delhi to curb energy trade with Moscow.
The development comes shortly after Prime Minister Narendra Modi met Russian President Vladimir Putin on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Tianjin, where energy cooperation remained a key point of discussion.
US Tariffs on Indian Goods
The Trump administration has taken a tougher stance on India’s Russian oil imports, imposing 25% reciprocal tariffs on Indian goods and an additional 25% levy tied specifically to crude purchases from Moscow. The move brings the total tariff burden on Indian exports to 50%, one of the highest globally. India has rejected the US measures, calling them “unjustified and unreasonable.”
Market Impact of India’s Purchases
Industry analysts suggest India’s continued imports are playing a stabilizing role in global oil markets. A report by CLSA warned that if India halts Russian oil imports, as much as 1 million barrels per day could be stranded, equal to about 1% of global supply. Such a disruption could drive Brent crude prices back to $90–100 per barrel, fueling inflation worldwide.
Meanwhile, US crude is being sold at a premium of around $3 per barrel, making discounted Russian supplies more attractive for Indian refiners.
Summary
India is buying Russian crude at deeper discounts of $3–$4 per barrel, even as the US raises tariffs and pressures New Delhi to cut energy ties with Moscow. Analysts warn that India’s exit from Russian oil could leave a significant supply gap and drive global prices higher, underscoring its strategic role in stabilizing energy markets.
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