Indian Oil Corporation (IOC), the country’s largest refiner, has purchased around 7 million barrels of crude oil for March loading, including supplies from Brazil’s Petrobras, as refiners continue to scale down dependence on Russian oil and diversify sourcing toward other regions, Reuters reported citing trade sources.
The purchases come amid a broader recalibration by refiners to boost imports from the Middle East, Africa and Latin America, a shift that could also support New Delhi’s efforts to advance trade negotiations with the United States aimed at lowering tariffs.
According to two trade sources familiar with the transactions, IOC bought 1 million barrels of Abu Dhabi’s Murban crude from Shell and 2 million barrels of Upper Zakum crude from trader Mercuria. The refiner also acquired 1 million barrels each of Angola’s Hungo and Clove grades from Exxon, they said.
In addition, IOC purchased 2 million barrels of Brazil’s Buzios crude from Petrobras under its optional supply contract, which allows flexibility to finalise deals at mutually agreed terms, the sources added.
Pricing details were not immediately available to the new agency. Oil buyers and sellers typically refrain from commenting on such transactions due to confidentiality agreements.
India’s imports of Russian crude fell to their lowest level in two years in December, while the share of oil sourced from OPEC nations climbed to an 11-month high, according to trade data.
India had emerged as the largest buyer of discounted Russian seaborne crude after the outbreak of the Ukraine war in 2022. However, refiners began cutting back purchases following tighter Western sanctions imposed in October on Russia’s major oil producers.
As part of its diversification drive, IOC last month also bought Colombian crude for the first time under an optional supply deal with state-run Ecopetrol, and sourced Ecuador’s Oriente crude for the first time, marking a further expansion of its supplier base.
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