US tariff on Russian oil could inflate India's import bill

Oil Turmoil

- ARUNIMA BHARADWAJ

RUSSIAN SHIPMENTS OF crude oil to India, that have rebounded in March after falling in February due to the US sanctions, are expected to slow down further if the US imposes tariffs on countries buying Russian oil.

Furthermore, India's import bill could rise significantly if Russian oil does come under tariffs as the country will lose its access to discounted barrels.

"Suppose Russian crude is priced out due to tariffs or tighter compliance risks, we anticipate a gradual but steady reallocation towards WTI, Brazilian pre-salt barrels, and a resurgence in West Asian term flows," said Sumit Ritolia, lead research analyst, refining & modeling at Kpler.