Sky-high US Tariffs on Brazil and India have now prompted both the nations to explore opportunities to strengthen oil trade, as India looks for alternative to Russian oil. Whereas Brazil is looking for new markets for its growing crude output.
Though Russian oil flows to India continue but Indian refiners are started preparation for the worst by continuing to diversify their sources, a move that could lead to Brazilian crude flows to India. Freight, arbitrage opportunities and availability of spare cargoes would determine the commercial viability of Brazilian crude among Indian refiners. Amidst the decision, analysts and refining sources are all praise for growing diplomatic efforts between the governments of India and Brazil are hoping for positive results between India and Brazil.
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.
Diplomatic Efforts Intensify Amid US Tariff
Indian Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri recently visited Brazil to discuss the chances of imports of Crude oil from the South American Country and explore opportunities for collaboration. US President Donald Trump move to impose an additional 25% tariff on US Imports from India raising the overall duty to 50 per cent led Indian policymakers to weigh the economic consequences. Immediately after the announcement of 50 per cent tariff on India by US, Indian Prime Minister Narendra Modi spoke with Brazilian President Lula da Silva. US has imposed 50% US tariff on Brazil also that furthers enhances chance of intensifies diplomatic ties between India and Brazil.