India, Brazil looking to strengthen oil ties amid high US tariffs: Report

Amid rising US tariffs on Russian oil, India and Brazil are exploring new opportunities to boost crude trade, with India seeking alternatives to Russian oil and Brazil eyeing new markets

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, according to a report by S&P Global Commodity Insights.

 

Russian oil flows to India continue, but Indian refiners are preparing for the worst by continuing to diversify their sources, a move that could lead to Brazilian crude flows to India, which posted the highest growth among all suppliers in the first half of 2025, rising even further in the second half.

 

While freight, arbitrage opportunities, and the availability of spare cargoes would determine the commercial viability of Brazilian crude among Indian refiners, growing diplomatic efforts between the governments of India and Brazil would yield positive results.

 

 

"Brazilian crude exports to India will be closely watched in the coming months, particularly as both countries navigate the impact of US tariffs related to Russian oil imports," said Benjamin Tang, Head of Liquid Bulk at S&P Global Commodities at Sea.

 

Indian Oil Corp. and Reliance Industries have been the primary buyers of Brazilian crude. The latest data indicates that most medium-sweet grades, including Lula/Tupi, Sepia, and Atapu, were discharged at IOCL's Paradip terminal in 2025, while the heavy-sour Peregrino grade was offloaded at Reliance's Sikka terminal.

 

Both Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri recently visited Brazil to discuss how India can increase crude oil imports from the South American country and explore opportunities for collaboration on offshore deep and ultra-deepwater exploration and production projects.