Indian Oil Corp (IOC), the leading refiner in India, has purchased 7 million barrels of Middle Eastern and African crude oil through tenders, including a rare acquisition of Abu Dhabi’s Murban crude. This move comes as US sanctions are expected to affect Russian oil supplies, according to trade sources on Friday.
Following the announcement of broad US sanctions against Russian oil producers and tankers last Friday, Indian refiners are increasing their purchases of Middle Eastern crude on the spot market. These sanctions have disrupted supplies from Russia, the world’s second-largest oil producer, and caused a shortage of available tankers.
Totsa, the trading arm of French energy giant TotalEnergies, sold a 2-million-barrel cargo of Murban crude to IOC. Additionally, IOC secured another shipment of 2 million barrels from Shell, which included 1 million barrels of Nigeria’s Agbami and Akpo crude and 1 million barrels of Gabon’s Rabi Light. Another deal with Chevron provided IOC with 2 million barrels of Agbami and Angolan Nemba crude.
These transactions were likely completed on a delivered basis, although specific prices have not been disclosed. As per usual practice, the companies involved have not commented on the commercial details.
Earlier this week, IOC issued tenders for both sour and sweet crude oil for delivery between the second half of February and the first half of March.
Spot premiums for Middle Eastern crude continued to rise on Thursday, reaching their highest level in over two years. The price surge is driven by strong demand from top importers, China and India, as they seek to replace Russian and Iranian oil affected by sanctions.
Related Topics:
- Oil Markets in Holiday Hold as Rate Cuts Create Uncertainty
- India’s Oil Demand Growth Expected to Exceed China’s
- Lower Crude Prices Cut India’s Oil Import Bill in Sep-Nov