Indian Oil Corp (IOC), India’s largest refiner, has purchased 7 million barrels of crude oil from the Middle East and Africa. This includes a rare purchase of Abu Dhabi’s Murban crude, as U.S. sanctions on Russia are expected to disrupt supply. These sanctions target Russian producers and tankers, adding pressure on supplies from the world’s second-largest oil producer and tightening ship availability.
IOC bought the 2-million-barrel Murban crude from Totsa, the trading arm of French energy giant TotalEnergies, on a delivered basis. The cargo was sold at a premium of about $5 per barrel above Dubai quotes when adjusted for free-on-board terms, according to sources.
Other Indian state-run refiners are expected to make similar spot purchases, as the sanctions have impacted Russia’s oil exports to India. These sanctions have especially affected low-sulphur Arctic oil grades like Novy Port, ARCO, and Varandey, which were previously supplied to India.
In addition to Murban, IOC has made other purchases. This includes a Very Large Crude Carrier (VLCC) with 1 million barrels each of Nigeria’s Agbami and Akpo crude, and 1 million barrels of Gabon’s Rabi Light from Shell. Another VLCC, purchased from Chevron, contains 1 million barrels each of Agbami and Angola’s Nemba crude.
IOC has not publicly commented on these commercial deals. Earlier this week, the company issued tenders for sour and sweet crude oil to be loaded between late February and early March.
Spot premiums for Middle Eastern crude have soared, reaching their highest levels in over two years. This surge is driven by strong demand from major importers like China and India, who are looking to replace oil supplies impacted by sanctions on Russia and Iran.
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