Indian refiners resume Russian crude purchases following US waiver
According to Rigzone, Indian refiners are rapidly purchasing Russian crude oil after the US granted a one-month waiver, with over 10 million barrels already bought as Middle East conflicts disrupt alternative supplies. State-run refiners that hadn’t purchased Russian oil since December are back in the market, with roughly 15 million barrels currently floating in Asian waters available for quick delivery to Indian ports.
The pricing has shifted dramatically. Russian Urals crude now trades at a $2-4 premium to Dated Brent, up from $15-20 discounts just last month when Indian buyers pulled back under US pressure.
What It Means for Subcontractors
- Higher oil prices ahead - The premium pricing for Russian crude and tight global supply could push up domestic oil prices, affecting fuel costs for equipment and transportation
- Supply chain shifts - Rapid changes in global oil flows may create opportunities for US-based logistics, transportation, and storage service providers as refiners seek alternative supply routes
- Market volatility - The temporary waiver creates uncertainty about future supply patterns, potentially leading to more volatile pricing that could impact project budgets and fuel hedging strategies
