The world's largest refinery, owned by Mukesh Ambani's Reliance Industries, is showing signs of pressure from the US and Europe. The Jamnagar refinery has begun to reduce its reliance on Russian oil, Notably increasing its purchases from the Middle East. Data from the past week indicates this trend, with expectations of further boosts in Middle Eastern supplies in the coming days.
Strategic Shift in Oil Procurement
Mukesh Ambani, owner of the world's largest oil refiner, has altered his strategy regarding crude oil sourcing. Reliance Industries is now scaling back Russian oil supplies and ramping up imports from the Middle East. This shift is influenced by fears of potential tariffs from the Trump. Administration and mounting pressure from Europe, Reliance's largest market for refined products. The European Union's ban on imports of refined products made from Russian crude is set to take effect on January 21, which could impact Reliance's exports to the bloc.
Increased Middle Eastern Imports
According to a Bloomberg report, sources familiar with. The matter revealed that Ambani's refinery has procured at least 2. 5 million barrels of oil from Iraq's Basrah Medium, Al-Shaheen, and Qatar Land. While Middle Eastern crude typically forms part of Reliance's usual requirements, the recent surge in purchases is noteworthy. Reliance Industries is also reportedly inquiring about the quality of Middle. Eastern oil, signaling a potential further increase in supplies from the region. Historically, Reliance has been the largest Indian buyer of Moscow's crude.
US and European Pressure
The US has been pressuring India to curb Russian crude oil imports as part of efforts to end the conflict in Ukraine, while earlier this month, Donald Trump claimed that India had agreed to cease all oil purchases from Moscow, though New Delhi didn't confirm his remarks. Local refiners have generally indicated a reduction, but not a complete halt, in Russian oil purchases. The EU's impending ban adds another layer of complexity for Reliance.
Significant Drop in Crude Oil Prices
Concurrently, the international crude oil market has witnessed a substantial price drop. Brent crude oil prices have fallen over 13% since September 26, from $70. 13 per barrel to $60. 58 per barrel as of October 21. US crude oil prices have also declined by approximately 14% during the same period, dropping from $65. 72 per barrel to $56, while 61 per barrel.
