Reliance Cuts Russian Crude Purchases as Sanctions Tighten Supply Flows

Reliance Industries, India’s largest private refiner, is sharply scaling back its intake of Russian crude in response to U.S. sanctions targeting major Russian producers Rosneft and Lukoil, according to Bloomberg. The company plans to limit Russian purchases from February to roughly 150,000 barrels per day of non-sanctioned grades, down from previous volumes exceeding 500,000 bpd under earlier long-term arrangements. The shift could alter regional crude flows and refining margins in Asia, with potential implications for benchmark prices of Oil – Brent Crude and Oil – US Crude as Indian refiners reassess supply portfolios and freight economics under tighter compliance scrutiny.

Over the past month, front-month futures for Brent have advanced about 11.35%, while U.S. crude has gained roughly 10.76%, reflecting both supply-side concerns amid sanction enforcement and expectations for resilient demand. From a short-term technical standpoint, daily indicators currently point to a Buy signal for U.S. crude and a Buy signal for Brent, suggesting positive momentum remains intact despite elevated geopolitical and policy-related risks. Investors can explore more updates, prices, and analysis across global markets at Commodities.