Russia Crude Imports Uncertainty Hits Indian Refiners Amid Global Energy Crisis

India's largest oil buyers are facing significant supply uncertainty due to ongoing conflicts in the Middle East and potential US restrictions on Russian crude imports. According to people with direct knowledge of the trade, Saudi Arabia's recent closure of a crucial pipeline will disrupt over 400,000 barrels per day of oil flows to India.

The situation is compounded by the prospect of tighter US sanctions on Russia, which could make its oil more difficult to handle and even tougher to obtain. Indian state-owned refiners have relied heavily on discounted Russian oil and relatively secure term Middle Eastern supplies to contain import costs.

However, with President Donald Trump's approval of a sweeping US sanctions bill, India is facing a twin squeeze - competing for barrels from further afield while trying to maintain margins at its refineries. The country has already been diversifying its crude imports, but this will come at a price.