Indian Refiners Face Uncertainty Amid Middle East Conflict and US Sanctions

India's state-owned oil refiners are facing uncertainty over future crude supplies due to disruptions caused by the Middle East conflict and potential US restrictions on Russian oil purchases.

The country has relied on discounted Russian crude and stable supply agreements with Middle Eastern producers to control import expenses. However, recent events have forced refiners to reassess their purchasing strategies.

Disruptions to established supply routes have been ongoing since late February, with Saudi Arabia suspending operations along a key pipeline section after drone attacks affected over 400,000 barrels per day of supplies destined for India.

The US is expanding sanctions-related tariff powers against countries conducting business with Russia's oil industry, posing additional financial and logistical complications for Indian buyers.