Indian Oil Corporation (IOC), the state-owned multinational oil and gas company, along with Bharat Petroleum (BPCL.NS), have secured Russian crude cargoes for delivery in September and October, marking a return to purchases after the price discounts widened, two company officials told Reuters.
These actions could reduce the share of China, the top buyer of Russian oil, in these imports. Sources told Reutes that China bought 15 cargoes of Russian oil for October and November.
The Indian refiners stopped buying Russian oil in July due to narrow price discounts in addition to US threats for an additional 25% tax on Indian goods as a punishment for its continued buying of the oil.
The sources noted that the discounts reached about $3 per barrel, adding that the IOC purchased other Russian crude oil grades.
Previously, two Indian government sources said the country intends to keep purchasing oil from Russia, despite U.S. President Donald Trump’s warnings of additional sanctions.