India’s largest state-owned refiner, Indian Oil Corporation (IOC), has boosted purchases of crude oil from ?West Africa and the Middle East, as New Delhi steers clear of Russian crude in the wake of the trade deal with the United States.
Indian Oil has acquired six million barrels of Middle East and West Africa crudes, traders told Reuters on Monday.
The refiner has bought crude from Nigeria, Angola, and the United Arab Emirates (UAE) via tenders issued last week for delivery in April.
Indian Oil has bought Pazflor crude from Angola and Agbami from Nigeria via the trading arm of supermajor TotalEnergies. Separately, the Indian refiner has also acquired Bonny Light and Akpo crudes from Nigeria from Shell, according to Reuters’ sources.
Commodity trader Mercuria has also sold two million barrels of UAE’s Upper Zakum crude to the Indian refiner, the sources added.
Indian refiners in general are not taking offers for Russian crude for March and April delivery and could continue avoiding such deals for a longer period of time, trade and refining sources told the publication.
India is retreating from the spot market, following the U.S.-India trade deal that depends on India significantly scaling back imports of oil from Russia, which has become the country’s top supplier.
In a sign that Indian refiners are now carefully assessing options and stay away from Russian oil, tankers carrying a total of up to 12 million barrels of crude oil were either en route or close to China in East Asian waters last week, waiting for buyers in the world’s top crude importer.
In another sign that China is now the ‘safest’ destination for Russia’s oil, Russian crude is being offered in China at widening discounts to attract Chinese refiners. With Indian refiners waiting for guidance on how to proceed with the oil trade with Russia, sellers of Russia’s crude are looking to attract additional purchases in China with hefty discounts of the Russian blends to Brent.
By Tsvetana Paraskova for Oilprice.com
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