Reliance offers Middle Eastern crude for sale in rare move

Indian oil giant Reliance Industries has offered Middle Eastern crude cargoes for sale to domestic and international buyers in a rare move, Bloomberg reports, citing people at companies that received the offers.

The offer: Reliance, which operates a key refining complex in the western state of Gujarat, has sought buyers for Murban and Upper Zakum crude from the UAE on the spot market. The company has also sold a cargo of Iraqi Basrah Medium crude to a Greek buyer, the news outlet added, citing people familiar with the sale.

Unusual step: Reliance is typically a major importer of Middle Eastern and Russian oil, not a seller. The move marks a reversal of its usual trading pattern and comes as Indian refiners adjust supply sources amid tightening Western sanctions that have made purchasing discounted Russian crude more difficult.

Compliance shift: Reliance was India’s top importer of Russian crude this year but purchased additional barrels from the Middle East last month after the US imposed new sanctions on Russian oil revenues. The company said it would comply with sanctions and adjust operations to meet new rules. It previously had a term supply deal of about 500k barrels per day (bpd) with Russia’s Rosneft PJSC.

Market context: India’s crude imports from the US rose to a record 568k bpd in September, dislodging the UAE as New Delhi’s fourth-largest supplier, The Hindu Businessline reported, citing Kpler data. Imports from the US averaged 450k-500k bpd in October and are expected to remain steady in November, the news outlet added, citing Kpler lead analyst Sumit Ritolia. The increase was driven by a favorable Brent-WTI spread and lower freight costs, helping Indian refiners diversify supply as Russian inflows decline.