Indian Oil refiners continue to source oil from Russia:Report

Indian oil refiners continue to source crude from Russian suppliers, with procurement decisions based on economic factors such as price, crude grade, inventories, logistics, and long-term contracts, according to government sources quoted by ANI. Sources clarified that Russian oil has never been sanctioned outright. Instead, it has been subject to a G7 and EU-imposed price cap mechanism designed to limit Russia’s revenues while maintaining global supply flows. India, he source stressed, has fully adhered to this framework, acting as a responsible energy market participant. India’s oil imports from Russia have remained legitimate and within the boundaries of international norms. By absorbing discounted Russian crude— particularly during a period when OPEC+ cut output by 5.86 mb/d—India helped ensure that global oil prices remained stable and markets liquid,” the sources said. 
Providing context for India’s decision to continue sourcing oil from Russian suppliers, sources said that Russia, the world’s second-largest crude oil producer with an output of around 9.5 mb/d (nearly 10% of global demand), is also the second-largest exporter, shipping about 4.5 mb/d of crude and 2.3 mb/d of refined products. Fears of Russian oil being pushed out of the market and the consequent dislocation of traditional trade flows drove dated Brent crude prices to soar to US $137 per barrel in March 2022.
Indian Oil Marketing Companies (OMCs) have refrained from sourcing crude from Iran and Venezuela, which are under direct US sanctions. Instead, Indian OMCs have consistently complied with the US-recommended price cap of $60 per barrel for Russian crude. The EU recently revised this cap to $47.60, which is expected to be enforced starting September, sources added.
Earlier, Reuters has reported that India's state refiners - Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd - have not sought Russian crude in the past week or so. The refiners and the federal oil ministry did not immediately respond to Reuters' requests for comment. The four refiners regularly buy Russian oil on a delivered basis and have turned to spot markets for replacement supply - mostly Middle Eastern grades such as Abu Dhabi's Murban crude and West African oil, sources said. Private refiners Reliance Industries and Nayara Energy are the biggest Russian oil buyers in India, but state refiners control over 60% of India's overall 5.2 million barrels per day refining capacity.
US President Donald Trump on Saturday said India has reportedly stopped purchasing Russian oil and called it a "good step" if confirmed, even as sources in the Ministry of External Affairs (MEA) said they were unaware of any pause on the imports. Speaking to reporters in Washington DC, Trump said: "I understand that India is no longer going to be buying oil from Russia. That's what I heard, I don't know if that's right or not. That is a good step. We will see what happens."  Sources said that it seems Trump's comment are based on one news agency's report.