Reliance Industries Shares Rise Nearly 2% After US Grants 30-Day Waiver for Russian Crude Shipments

Shares of Reliance Industries climbed nearly 2% in early trade on Friday, bucking a broader market decline after the United States granted a temporary 30-day waiver allowing Indian refiners to process Russian crude shipments already in transit.

The stock rose 1.85% to ₹1,414.20, outperforming the benchmark indices. During the session, the stock touched an intraday high of ₹1,419.50, compared with the previous close near ₹1,388–₹1,390 levels.

The rally comes after the US Treasury issued a 30-day “General License” exemption, allowing refiners to process Russian crude cargoes that were already stranded at sea due to tightening sanctions.

Waiver Could Unlock Millions of Barrels for Reliance

For Reliance Industries, the waiver has immediate operational and financial implications.

The company operates the world’s largest refining complex at Jamnagar, which has a combined refining capacity of around 1.24 million barrels per day (bpd). The complex includes:

• Jamnagar Refinery (SEZ): ~580,000 bpd
• Jamnagar Refinery (Domestic Tariff Area): ~660,000 bpd

On this scale, Reliance has historically been among the largest buyers of discounted Russian crude since 2022. They are benefiting from price gaps of $10–$15 per barrel below global benchmarks at times.

The 30-day waiver window allows refiners to process Russian shipments already in transit, potentially preventing disruptions involving several million barrels of crude headed toward Asian refineries. For Reliance, access to these cargoes could translate into higher refining margins, especially at a time when Brent crude is trading between $84.40 and $85.10 per barrel.

If refiners are able to secure Russian cargoes even at a $8–$12 per barrel discount, refining margins could expand meaningfully compared with processing benchmark-priced crude.

Reliance’s Gross Refining Margins have fluctuated between $9 and $15 per barrel, depending on crude sourcing and product spreads. Access to discounted feedstock could push margins toward the upper end of that range. Given its over 1.2 million bpd processing capacity, even a $5 per barrel improvement in margins could translate into millions of dollars in additional daily refining profits.

Energy Market Volatility Adds Importance

The waiver also comes at a time of heightened global energy volatility. Oil markets have been reacting to rising geopolitical tensions in the Middle East, which has pushed Brent crude above $84 per barrel and raised concerns about supply disruptions, particularly around the Strait of Hormuz, through which nearly 20% of global oil shipments pass.

For major refining hubs like Jamnagar, the ability to process discounted crude during such volatility becomes strategically valuable. Reliance’s refining operations are designed to process over 200 grades of crude oil, giving the company flexibility to switch between different feedstock sources.

Stock Reaction Reflects Investor Optimism

Investors reacted quickly, driving Reliance shares higher even as broader markets struggled. At ₹1,414.20, the stock was trading about ₹25–₹30 higher during the session, reflecting expectations that the waiver could improve near-term refining economics.

Reliance Industries carries significant weight in Indian benchmarks, accounting for roughly 9–10% of the weightage in the Nifty 50, making any move in the stock closely watched by market participants.

Market participants will now watch whether the 30-day waiver window leads to sustained flows of Russian crude to Indian refiners or remains a temporary logistical relief.

For Reliance Industries, this offers a short-term opportunity to secure discounted feedstock for its 1.24 million bpd refining network, potentially boosting margins at a time when global crude prices remain elevated. If oil volatility persists and discounted supplies remain available, the company’s refining and petrochemical segment could see stronger earnings momentum in the coming quarter.

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