Sky-high US tariffs are driving India and Brazil to intensify discussions on boosting oil trade. According to a report by S&P Global Commodity Insights, New Delhi is actively seeking alternatives to Russian oil, while Brazil looks for new markets to accommodate its growing crude output.
India Diversifies Beyond Russian Oil
Although Russian oil continues to flow into India, refiners are preparing for potential disruptions by diversifying their sources. This strategy could significantly increase Brazilian crude shipments to India. In fact, Brazilian exports to India recorded the highest growth among all suppliers in the first half of 2025—and industry experts anticipate an even bigger surge in the second half.
Commercial Factors and Diplomatic Push
The viability of Brazilian crude for Indian refiners will depend on several factors, including freight costs, arbitrage opportunities, and cargo availability. Ongoing diplomatic engagement between the two governments is creating favorable conditions for trade expansion.
“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,” noted Benjamin Tang, Head of Liquid Bulk at S&P Global Commodities at Sea.
Key Buyers and Crude Grades
Indian Oil Corporation (IOC) and Reliance Industries, two major Indian refiners, primarily buy Brazilian oil. Recent data shows IOC received medium-sweet grades such as Lula/Tupi, Sepia, and Atapu at its Paradip terminal, while Reliance took delivery of the heavy-sour Peregrino grade at its Sikka terminal in 2025.
High-Level Engagement for Energy Cooperation
To strengthen energy ties, Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri recently visited Brazil. As reported by business-standard.com, the discussions focused on increasing crude imports and exploring joint opportunities in offshore deepwater and ultra-deepwater exploration and production projects.
