Posted on 08/15/2025 8:00:17 AM PDT by libh8er
Indian refiners, the top importers of Russian crude oil, are searching for alternative suppliers ahead of Friday’s summit between President Trump and his Russian counterpart, Vladimir Putin.
India, the world’s third-largest oil consumer, is looking to switch up its procurement process after Trump imposed a total 50% tariff rate on New Delhi, accusing the country of effectively fueling Russia’s war machine.
Oil importers are hedging their bets that even harsher punishments are in store for anyone who purchases petroleum from Moscow once Trump meets with Putin, with India’s state processor buying large bulk quantities of non-Russian crude this week to prepare for the worst, Bloomberg reported.
Both Indian Oil Corp. and Bharat Petroleum Corp. have purchased cargo from all over the world, including the US, Brazil and the Middle East.
Saudi Arabia remains one of the top exporters of oil to India, with Riyadh sending about 22.5 million barrels of crude that are expected to arrive in September, according to Bloomberg.
The full 50% tariff rate imposed by Trump is due to take effect Aug. 27, supplanting the 25% rate currently in effect.
The race to stock up comes as Indian Oil, the country’s top refiner, missed its quarterly profit estimates on Thursday, reporting revenue about $200 million below expectations.
On average, India imported about $130 billion in Russian oil per year since Moscow invaded Ukraine in February 2022, according to an analysis from the New York Times.
“Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,” India’s foreign ministry said in a statement responding to Trump’s Aug. 6 tariff announcement.
(Excerpt) Read more at nypost.com ...
Will this meeting today make a difference. Was this already in effect??
the can drill for their own oil by the many arms of the Vishnoo
As the world’s third-largest oil consumer, Indian demand will drive oil prices upward in the US. That would be inflationary. I doubt the world can bump production that much that rapidly. My guess is that Trump will have to go to the Saudis to make it up. Don’t know to what degree they can.
That takes time. This is about the here and now.
you doubt the mighty powers of the Vishnoo???
The Russians might sell the crude oil to Iraq and Iran (instead of India), which would refine and use it domestically, allowing Iraq and Iran to export more or their own crude oil and refined products.
“India imported about $130 billion in Russian oil per year”
I thought the Russians sold about two million barrels a day to India at about $50/barrel. That would be about $100 million/day and about $35 billion/year.
Sounds like that’s a noo-noo.
And several items:
India DOES drill for oil. And fails. Their domestic oil production is down to (it has been declining despite the drilling) about 900K barrels/day with consumption over 5 million barrels/day (and growing, 5% last year). If there is nothing down there, you can drill for decades and find nothing.
About half of India’s refiners are state owned. The refiners themselves are not subject to the extra tariff because they don’t sell oil to the US. If they buy Russian oil and then refine it and sell the products to Europe, it’s not clear how the US collects extra tariff on that. Who would pay it? Europe?
And lastly, the Russians or Saudis or anyone is under no obligation to price their oil at a number created in a hostile country’s NYMEX. They can price it at whatever a customer will pay. Why would they let a hostile market (which may be govt manipulated) define their price?
ahead of
*********
When did we start using this “ahead of” garbage?
Trump and Saudis seem to communicate better than most...better than India.
Trump, Alaska, the US everywhere should reduce the overhead cost of oil drilling...especially the regulations and permit delays. Time is money.
The supply should increase, the price should come down.
I don’t see a practical way for Russia to ship 2 million barrels a day of oil to Iran via pipeline.
Tankers carrying Russian oil might unload in Iraq and Iran instead of India.
Be aware that the Trump Russian oil tariffs will hurt India far more than Russia.
The Russian government probably only gets a percentage of the revenue from oil sales to India.
The Russian government might make up for the lost revenue by raising the tariffs on imports.
China has a very complex economy. Russia can buy almost everything it might need from China.
For this to have the intended political effects on Russia, the pain has to be felt immediately. Hence is my concern that consequent inflationary pressures could work against trump domestically until these flows can be brought online. That doesn't happen overnight.
The supply should increase, the price should come down.
Eventually, but only as long as Trump remains capable of effecting policy. It's playing chess with the planet whilst dancing on the knife edge. Hopefully we don't get the point.
It is not clear that it will work that way.
Will India now gratuitously use more oil than it needed previously?
Or will India just pay more for illegal black market oil that has passed though many hiding hands? If it is the latter, won't there be a surplus of legal oil that previously went to India but now needs a new home?
India continuing to need oil is not a new demand for additional oil.
It is if Russia can't sell theirs.
Maybe I have missed something.
I thought India had said they would continue to buy Russian oil regardless.
If India has agreed to stop buying Russian oil, why is President Trump punishing India with increased tariffs - up to 50 percent from 25 percent?
Did you notice the title of the thread? It's not cast in stone.
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