Brent Crude, traded on the Intercontinental Exchange (ICE), is the world's dominant crude oil benchmark — used for pricing approximately two-thirds of the world's internationally traded oil, including the actual crude India buys.
India imports approximately 4.5–5 million barrels per day. A $10 rise in Brent prices increases India's annual crude import bill by approximately $16–18 billion (~₹1.3–1.5 lakh crore), widening the current account deficit and weakening the Rupee. This CAD-widening effect is why high Brent prices are structurally bearish for Indian equities — they simultaneously pressure the Rupee (making imports more expensive), raise fuel costs for consumers and businesses, and limit RBI's space to cut interest rates.
Following Western sanctions on Russia after 2022, India dramatically increased Russian crude imports — which trade at discounts of $10–18 per barrel to Brent. As of 2025, Russia accounts for approximately 35–40% of India's crude imports, up from under 1% in 2021. This discount purchasing has reduced India's effective average crude import cost significantly versus the Brent benchmark. However, payment settlement infrastructure and secondary sanctions risk remain ongoing policy uncertainties.
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