Tariff Turbulence Hits Oil Trade: Indian Refiners Navigate Pressure from U.S. and EU Sanctions

Key Highlights:

• Brent at $73.14 and WTI at $69.94 per barrel
• Indian refiners urgently replacing Russian crude
• Bitumen prices vary across grades and locations
• Short-term volatility expected in Asian crude markets

Oil & Petroleum Market Price

• As of July 31, 2025, Brent Crude Oil is trading at $73.14 per barrel, down 0.14% from the previous session. It opened today at $73.53, compared to yesterday’s closing price of $73.24.
• WTI Crude Oil is currently priced at $69.94 per barrel, marking a 0.09% decline. It opened today at $70.21, slightly lower than yesterday’s close of $70.00.
• The current Roadgrip Bitumen price for VG40 grade in Karwar stands at ₹36,640 per metric ton, while the VG30 grade is priced slightly lower at ₹36,630 per metric ton. 
• In Pithampur, Roadgrip Bitumen Emulsion RS-1 is available at ₹32,030 per metric ton, and the SS-1 emulsion variant is priced at ₹33,130 per metric ton.

Demand-Supply Disruptions & Urgent Sourcing

• India, one of the largest consumers of crude oil, is facing a supply crunch as it scrambles to source alternatives to Russian oil. The country previously imported over 1.6 million barrels per day of Russian crude—roughly one-third of its total requirement. 
• However, with geopolitical heat rising and logistical uncertainties mounting, state-owned and private refiners are now aggressively seeking cargoes from Middle Eastern and West African suppliers. 
• The market is seeing unusually prompt purchase tenders, indicating immediate supply needs and inventory adjustments. While demand remains strong, supply-side constraints due to declining Russian inflows are creating a tightening scenario.

Market News: Policy & Geopolitical Pressure

• Indian refiners are under dual pressure from increased Western scrutiny of Russian energy transactions. The United States, under President Donald Trump’s administration, has criticized India’s energy and defense ties with Moscow and imposed a 25% tariff on Indian exports.
• Simultaneously, the European Union is intensifying its enforcement against refined product imports derived from Russian crude. This comes amid ongoing sanctions and diplomatic tension involving Russian energy flows. 
• In response, Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) have issued back-to-back tenders for late September to early October delivery—much earlier than typical scheduling cycles—signaling procurement urgency.

Market Expectation: Rising Costs May Affect Refining Margins

• Market sentiment remains cautious, with Indian refiners seeking policy direction from New Delhi regarding future energy purchases. With Russian supply dwindling and global crude prices edging upward, a tighter supply-demand balance is expected in the short term. 
• If geopolitical pressure persists and alternatives remain costly, the cost of crude for Indian refiners may rise further, potentially impacting refining margins and fuel pricing. Traders anticipate increased volatility in Asian crude benchmarks, especially for non-Russian grades, as competition for Middle Eastern and African barrels intensifies.