India Eyes Deeper Oil Ties With Brazil Amid US Tariff Issue: S&P

Amid tariff uncertainty and rising trade tensions with the US, India is exploring opportunities to strengthen its oil trade with Brazil, according to S&P Global Commodity Insights.

- ARUNIMA BHARADWAJ

While Russian oil continues to flow into India, refiners are increasingly diversifying their sources—a strategy that could bring more Brazilian crude into the country.

Both India and Brazil face a steep 50% US tariff, the highest among major economies.

Indian Oil (IOC) and Reliance Industries have emerged as the leading buyers of Brazilian crude this year. S&P data shows that most medium-sweet grades—Lula/Tupi, Sepia, and Atapu—were discharged at IOC's Paradip terminal in 2025, while Reliance imported the heavy-sour Peregrino grade at its Sikka terminal.

"Sky-high US tariffs are prompting India and Brazil to explore opportunities to boost oil trade, as New Delhi looks for alternatives to Russian oil, while Brazil scouts for newer markets for its growing crude output," S&P Global Commodity Insights said.

According to the agency, Brazilian crude supplies posted the fastest growth among all suppliers to India in the first half of 2025, with volumes rising further in the second half.