India hasn’t given refiners directions to stop buying Russia Oil
India has not issued any directive to its oil refiners to halt purchases of Russian crude, Bloomberg reported, citing people familiar with the matter. The decision comes as the Indian government navigates its energy security needs while managing diplomatic ties with Moscow and avoiding further tensions with US President Donald Trump. According to Bloomberg sources who spoke on the condition of anonymity due to the sensitivity of the issue, no official decision has been made to stop imports from Russia. Both state-run and private refiners continue to source oil based on commercial considerations, and are permitted to buy from suppliers of their choice.
Shippers ask to end contracts with Russian-backed refiner Nayara
The owners of three vessels chartered by India’s Nayara Energy have asked to end their contracts with company, six sources familiar with the matter said on Tuesday, under pressure from EU sanctions imposed on the Russian-owned refiner. Nayara, majority-owned by Russian entities including oil major Rosneft, runs India’s third-biggest refinery and exports refined products and also supplies them domestically. Fresh European Union sanctions unveiled on July 18 that target Russia and its energy sector over Moscow’s war in Ukraine, have been increasingly disruptive to Nayara. Reuters earlier reported it has been forced to reduce operations at its 400,000-barrels-per-day refinery due to fuel storage constraints. India-based Seven Islands Shipping Ltd and Great Eastern Shipping Co (GESCO) have asked Nayara to release the three clean products tankers from their contracts, citing concerns over the sanctions, five of the sources told Reuters. Seven Islands is seeking the release of its medium-range vessels Bourbon and Courage, while GESCO has sought the return of the Jag Pooja, the sources said. The sources declined to be named as they were not authorised to speak to the media. Mumbai-based Nayara did not immediately respond to a Reuters request for comment. It has previously criticised the EU sanctions, calling them “unjust and unilateral”. Seven Islands and GESCO did not immediately respond to requests for comment. Bourbon is anchored near Vadinar port in western India, where Nayara’s refinery is based, while Courage and Jag Pooja are floating off Kochi and Ennore ports, respectively, data from analytics firm Kpler showed. Another tanker, Sanmar Songbird, chartered by Indian state refiner Hindustan Petroleum Corp, was scheduled to load gasoline from Nayara on Tuesday, according to three sources and LSEG data. But it has since been diverted to load from Mangalore Refinery and Petrochemicals Ltd, sources said. The diversion was due to the sanctions and the lack of available insurance cover for the voyage, they said. HPCL and Sanmar did not immediately respond to requests for comment.
Trump Tariff: Petroleum Ministry Evaluates Russia Penalty; Awaits Executive Directive
The Ministry of Petroleum and Natural Gas is currently assessing the potential impact of U.S. President Donald Trump’s newly announced 25% tariff on Indian exports. The announcement also states that an additional penalty will be imposed due to India’s crude oil imports from Russia. Senior government officials told NDTV Profit that the ministry is awaiting formal executive directives on specific measures. The US tariff announcement, made late Wednesday, has raised concerns across India’s energy sector, particularly as Russian crude now accounts for nearly 35–40% of India’s total oil imports. India’s energy bill could see a sharp spike if Russian supply is disrupted, a senior official said, adding that refiners may be forced to turn to alternative sources such as the U.S. and Brazil. India has diversified its crude basket in recent years, but the scale of Russian imports, up nearly tenfold since 2021, makes any abrupt shift both costly and complex. Sources to NDTV Profit also raised concerns over tariff-driven disruptions which may push up global prices.
Donald Trump Snubs India, Signs Oil Deal With Pak. What Does This Mean?
After announcing a 25 per cent ‘reciprocal tariff’ on his “friend” India, plus a penalty for buying Russian weapons and oil, Donald Trump said Thursday the US had struck a trade deal with Pakistan, including plans to develop its “massive” oil reserves. A disgruntled Trump also took a shot at India – “maybe they (Pak) will sell oil to India” – over the continued purchase of Russian oil despite sanctions on Moscow for its war on Ukraine. In a Truth Social post last night, Trump appeared to blame India (and China) for funding – by buying Russian crude – a conflict he once boasted he could end within 24 hours of being taking oath. A disgruntled American President also slammed the Indian economy – the fourth largest in the world – as “dead” after failing to persuade Delhi to open its dairy and agriculture markets. Meanwhile, Pak this morning said its deal will “result in a reduction of reciprocal tariffs, especially on exports to the US” but did not give details of what the lower rates would be.
India oil refiners squeezed by anti-Russia push from US and EU
India’s oil refiners have been thrown into disarray after President Donald Trump cited their purchases of Russian crude as a reason for imposing hefty 25% import tariffs on all goods from the Asian nation. The processors, who have become heavily dependent on cut-price Russian energy over the past few years, were already dealing with a proposed European Union ban on their exports of diesel made from Russian oil. With Washington now also taking an increasingly hard line against the Kremlin, a scramble for alternative sources of crude is turning into a frenzy. A senior executive at a major Indian oil refiner said the company would try to source more crude from the Middle East and Africa, while also looking to the government for guidance on how it should proceed. The situation was not entirely unexpected, but would increase costs and reduce margins, said the executive, who asked not to be named due to the sensitivity of the matter. India is heavily dependent on imported energy, and more than a third of its overseas purchases of crude come from Russia. Along with China, it has become the most important buyer of Moscow’s oil, with many of its refiners coming to rely on the discounted shipments. Earlier this month, the country’s crude processors were hit by the EU’s intention to ban imports of diesel made in the country from Russian oil, with Nayara Energy Ltd. specifically targeted with penalties. The processors are now finding themselves under even more pressure from Washington.
Oil Prices Hold Gains Amid Tariff Threats and Trade Turmoil
Oil prices traded flat on Thursday in Asian markets, holding on to gains from earlier in the week as traders continued to weigh intensifying geopolitical risks and new tariff deals that could reshape global crude flows. As of Thursday morning in Asia, WTI crude had dipped to $69.99 per barrel and Brent crude was trading at $73.10 per barrel. Though slightly lower on the day, both benchmarks have risen approximately 7% this week, underpinned by rising concern over supply constraints stemming from new U.S. sanctions and trade policies. This week, President Trump shortened the deadline for Russia to reach a peace agreement with Ukraine from 50 days to just 10–12 days, warning of secondary tariffs of up to 100% on countries that continue to import Russian oil if no progress is made. India, a major buyer of discounted Russian crude, is at the center of this pressure campaign. On Wednesday, Trump confirmed that 25% tariffs on Indian imports will take effect on Friday, although trade talks between the two nations are ongoing. The uncertainty is causing anxiety among Indian refiners and reverberating through global oil markets. The Brent-Dubai spread has shifted deeper into discount territory as refiners look to the Middle East for more secure alternatives. “Concerns that secondary tariffs on countries importing Russian crude will tighten supplies continue to drive buying interest,” said Toshitaka Tazawa of Fujitomi Securities. On the same day, the EIA reported a 7.7 million barrel build in crude inventories for the week ending July 25, the largest in months, bringing stockpiles to 426.7 million barrels. The increase was attributed to a sharp drop in exports, which fell by 1.16 million barrels per day. Despite the bearish crude build, product inventories told a more supportive story. Gasoline stocks fell by 2.7 million barrels, far exceeding the 600,000-barrel draw forecast by analysts, suggesting healthy demand during the peak of the U.S. driving season. Meanwhile, distillate stocks rose by 3.64 million barrels, easing concerns over tightness in that market segment. The mixed data produced a muted response from markets, as geopolitical headlines continued to overshadow fundamental inventory signals. The U.S. also unveiled new sanctions on Wednesday, targeting more than 115 Iran-linked individuals, companies, and ships, escalating its “maximum pressure” campaign following airstrikes on Iranian nuclear sites in June. At the same time, the administration warned China, the top buyer of Russian and Iranian oil, that it could face steep tariffs if it continues these purchases. These actions point to a broader effort by Washington to isolate major oil producers through economic pressure, raising the prospect of constrained global supplies in the months ahead. Demand concerns, especially following the Fed’s relatively hawkish statements on Wednesday, are holding oil prices back, and traders will be watching inflation data and jobs numbers set to come out today and tomorrow.
Oil Prices Remain Elevated as Traders Brace for Volatile Week
Oil prices held onto recent gains in early Asian trading on Wednesday, buoyed by a complex mix of geopolitical risks, tightening trade policies, and anticipation surrounding the U.S. Federal Reserve’s upcoming interest rate decision. After surging more than 3% on Tuesday, both major crude benchmarks saw modest gains in early Asian trade. At the time of writing, WTI crude was up slightly at $69.24 per barrel, while Brent crude also edged higher to $72.66 per barrel, marking their highest levels since June 22. The Tuesday rally was largely triggered by mounting pressure from the United States on Moscow to end the war in Ukraine, with former President Donald Trump issuing a shortened 10-12 day ultimatum for Russia to show meaningful progress or face new secondary sanctions. These measures would include 100% tariffs on trading partners continuing to import Russian oil, a move that ING analysts said “would lead to a dramatic shift in the oil market.” Such tariffs are expected to deter major importers like China and India. While China would be more likely to resist U.S. pressure, India has signaled its willingness to comply, potentially putting as much as 2.3 million barrels per day of Russian exports at risk. Simultaneously, the United States and European Union managed to avert a full-blown trade war with a deal that introduced 15% U.S. tariffs on certain EU imports, relieving some concerns over global economic growth and offering oil prices additional support. Meanwhile, in Venezuela, foreign oil partners are still waiting on U.S. approvals to resume sanctioned operations—a potential wildcard for global supply dynamics if those barrels re-enter the market. The latest American Petroleum Institute (API) data also cast a shadow over the recent rally. According to the API, U.S. crude inventories unexpectedly rose by 1.5 million barrels in the week ending July 25, against expectations for a 2.5 million-barrel draw. This surprise build suggests demand softness or refining bottlenecks in the world’s largest fuel consumer. The market now awaits official inventory data from the U.S. Energy Information Administration, due later today, for confirmation. Oil traders remain cautious ahead of the Federal Reserve’s interest rate decision later on Wednesday. While the Fed is widely expected to hold rates steady, the accompanying statement and economic projections could influence market sentiment and the U.S. dollar—an important factor for oil prices. A stronger dollar, which gained ahead of the Fed decision, tends to put downward pressure on crude by making it more expensive for foreign buyers. Other economic data due this week includes nonfarm payrolls on Friday, China’s PMI numbers on Thursday, and the Bank of Japan’s interest rate decision, all of which could influence global energy demand projections. Oil prices are set for another volatile week with geopolitical and economic catalysts sure to shift sentiment several times in the coming days.
Indian Gas Giant Seeks U.S. LNG Cargo Swap
State-controlled natural gas firm GAIL (India) is looking to swap six U.S.-origin LNG cargoes with six cargoes for delivery to India in a tender running until August 6, industry sources told Reuterson Tuesday. GAIL (India) is offering cargoes loading every other month in 2026, beginning in February and ending in December, on a free-on-board (FOB) basis from the U.S. export terminals at Sabine Pass or Cove Point, one of Reuters’ sources said. In exchange for these cargoes the Indian company is looking for six deliveries to India on a delivered ex-ship (DES) basis for the same months. GAIL, the biggest natural gas distributor in India, has also reportedly started discussions about buying LNG from the proposed $44-billion Alaska LNG project. The potential deal to purchase LNG from the project is part of India’s push to buy and pledge to buy increased volumes of U.S. energy products and thus reduce its trade surplus with America and avoid steep tariffs.
India’s Nayara Cuts Oil Refinery Run Rate After EU Sanctions
Nayara Energy is reducing run rates at its west India refinery as more domestic and global players spurn the refiner after EU imposed sanctions on the company. The 400,000 barrel-a-day Vadinar refinery is currently operating at about 70%-80%, said the people, who asked not to be named due to the sensitivity of the matter. Across India, processors typically run their plants at close to 100% of their nameplate capacity, or over.
India’s Russian oil worries
The European Union’s 18th sanctions package (July 2025) significantly tightens financing restrictions on Russian oil and other energy resources from Moscow. And no sooner were the sanctions made public, debates and discussions on what happens to a buyers like India have started. But India has now sturdily expanded its energy basket, while pushing for more green energy, though strategic storage capacity is still not enough to deal with long-term crises. On July 18, Randhir Jaiswal, Spokesperson of the Ministry of External Affairs, had tweeted “We have noted the latest sanctions announced by the European Union. India does not subscribe to any unilateral sanction measures. We are a responsible actor and remain fully committed to our legal obligations. “Government of India considers the provisions of energy security a responsibility of paramount importance to meet the basic needs of its citizens. We would stress that there should be no double standards especially when it comes to energy trade.” The latest EU sanctions package aims to tighten the pressure on Russia’s oil revenues by lowering the price cap on Russian crude from $60 to $47.6 per barrel — now pegged at 15 per cent below the global average and reviewed every six months, according to Umud Shokri, Energy Strategist and Senior Foreign Policy Advisor. The sanctions also include refined petroleum products such as diesel and petrol that are processed from Russian crude — even if refined outside Russia, such as in India — and ban their entry into the EU. “Over 100 vessels from Russia’s shadow fleet have been blacklisted, and enforcement has intensified, making it harder to use intermediary countries or disguised shipping routes to bypass restrictions,” he said. For India, the most immediate impact is on private refiners, especially firms such as Nayara Energy that have strong Russian links. “India’s fuel exports to Europe — primarily diesel — have already declined, dropping from $19.2 billion in FY24 to $15 billion in FY25. Up to $5 billion more in exports are now at risk. While public sector refineries are not directly targeted in this round of sanctions, the increased scrutiny of supply chains and tighter compliance requirements may create future challenges, especially if enforcement extends to vessels or intermediaries involved in Russian-linked trade,” he said. “However, for the broader Indian economy and most domestic oil buyers, the practical effect remains limited. India continues to import discounted Russian crude, which supports domestic energy needs and cushions inflation. Moreover, Indian refiners can reroute some exports to Asia or Africa, albeit with lower profit margins and higher transport costs,” he said adding “So while the new EU measures don’t disrupt India’s energy security or overall trade posture for now, they do signal a growing risk environment for Indian exporters tied to Russian oil, with future rounds of enforcement potentially carrying broader consequences.” Finance factor Even if logistics is worked out how will Indian refiners get the finance for trading with Russia as the sanctions extend beyond traditional financial channels? “…EU and G7 entities are now banned from providing financing, insurance, shipping, brokering, or technical support for Russian crude or petroleum products sold above the $47.6/barrel price cap — regardless of destination. The package also imposes full transaction bans on a broader list of Russian banks and refiners, including those linked to shadow fleets and third-country intermediaries. Newly added asset freeze measures block access to EU financial services and markets for targeted firms with no wind-down periods,” he said. “This aims to disrupt layered or disguised financing structures. The European Commission has also mandated stricter enforcement through price cap audits, regular reviews, and closer monitoring of circumvention tactics like falsified attestations or fraudulent paperwork,” he said. “In practice, this forces mainstream EU/G7 banks and insurers to withdraw entirely from high-risk Russian oil transactions. Blacklisted firms lose access to EU capital, trade finance, and settlement systems,” he added. He agreed that while countries like India may still import Russian oil using non-Western channels, reliance on Western insurers or shipping services may expose them to secondary sanctions or operational disruptions. “These measures significantly restrict Russia’s ability to access global finance for oil exports while raising compliance burdens worldwide,” he said.