August 15, 2025

Hold on tight, oil lovers! India’s big state refiners, including Indian Oil Corp, are gearing up to buy Russian Urals crude oil again. Why? Because the discounts on Russian oil have opened wider, making it cheaper and sweeter than before. This spicy move comes right before a high-voltage meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska on Friday. Could this meeting change everything in the oil world? Let’s find out! Last month, Indian state refiners—Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd—hit the brakes on buying Russian oil. The reason? Discounts had shrunk, making Russian crude less tempting. But now, those spot discounts for Russian Urals crude delivered to India in October have jumped to around $2.70 per barrel, up from just $1 to $1.50 in late July. This means Urals crude is now cheaper to bring to India than it was a few months ago! India is no stranger to Russian oil. In fact, it became the world’s largest buyer of Russian seaborne oil since 2022, especially after Western countries put tough sanctions on Russia due to the Ukraine war. Trump even threatened sanctions on buyers of Russian exports last month unless Russia agreed to peace. So, this meeting with Putin is a big deal and could send ripples across global oil markets. One insider told Reuters, "We will wait for the outcome of Trump-Putin talks that will give us some indications." Bharat Petroleum Corp’s finance head, Vetsa Ramakrishna Gupta, shared in a call that the company hopes to keep using Russian oil to cover up to 35% of its processing needs—as long as no new sanctions come in. Though BPCL slowed Russian oil buying in July when discounts narrowed, they are now stepping back in thanks to the better price. To fill the gap when Russian oil supplies dipped, Indian refiners turned to spot purchases from Brazil, West Africa, and the U.S. But remember, Russian Urals crude is priced lower than Brent crude oil—a popular global benchmark—making it tough for other sources to compete. Don’t forget, Russian oil makes up over one-third of India’s total oil imports. While state refineries buy on a delivered basis, private giants like Reliance Industries and Nayara Energy have signed long-term deals for Russian oil. So, as the countdown begins for the Trump-Putin face-to-face, India’s state-owned refiners are watching closely, ready to jump in on Russian oil deals if the discounts stay juicy and sanctions keep away. This saga promises plenty of twists in the global oil story. Stay tuned!

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Tags: Indian oil corp, Russian crude oil, Urals crude, Oil discounts, India oil imports, Trump-putin meeting,