Indian Oil, BPCL resume buying Russian oil for September as discounts widen, sources say

NEW DELHI: India’s state-run refiners Indian Oil and Bharat Petroleum have bought Russian oil for September and October delivery, resuming purchases after discounts widened, two company officials aware of the matter said on Wednesday.

The refiners had halted purchases in July due to narrower discounts and after India was criticised by Washington for its purchases of Russian oil.

President Donald Trump also threatened an additional 25% levy on Indian goods, effective August 27, to penalize New Delhi for its continued buying of the oil.

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Discounts for Russian flagship Urals crude have widened to about $3 per barrel, making the oil attractive for Indian refiners, while China has stepped up purchases, the officials said.

In addition to Urals, IOC has also bought other Russian crude oil grades including Varandey and Siberian Light, they said.

Indian companies do not comment on their crude imports.

On Monday, IOC, the country’s top refiner, told analysts that it would continue to buy Russian oil depending on economics.