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Indian Oil Corporation (IOC), India’s largest oil refiner, has sourced around 7 million barrels of crude oil for March delivery from suppliers in Brazil, Angola, and the Middle East, as the country continues to reduce its dependence on Russian crude.
The move comes at a time when India’s imports of Russian oil have dropped to a two-year low, driven largely by tougher Western sanctions on Moscow’s energy sector.
Shift Away from Russian Oil Accelerates
According to two trade sources familiar with the matter, IOC has adjusted its sourcing strategy to replace Russian barrels with supplies from a wider range of producers. As a result, refiners in India are increasingly turning to OPEC producers and Atlantic Basin suppliers.
In December, trade data showed that Russian crude shipments to India fell sharply. At the same time, the share of oil imports from OPEC nations climbed to an 11-month high.
This shift signals a broader recalibration by Indian refiners, who are balancing energy security with geopolitical and trade considerations.
Details of IOC’s Crude Purchases
For March loading, IOC has secured crude oil from multiple sources:
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1 million barrels of Murban crude from Abu Dhabi, supplied by Shell
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2 million barrels of Upper Zakum crude from trader Mercuria
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1 million barrels each of Hungo and Clove crude from Angola, supplied by Exxon
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2 million barrels of Brazil’s Buzios crude from Petrobras
The Brazilian cargo was purchased under an optional supply contract, which allows IOC flexibility to negotiate volumes and pricing based on market conditions.
Pricing details were not disclosed, as oil trading contracts typically remain confidential.
Strategic Benefits for India
By reducing its reliance on Russian oil, India may strengthen its position in ongoing trade discussions with the United States, particularly around tariff reductions and market access.
Since the start of the Ukraine war in 2022, India had emerged as the largest buyer of discounted Russian seaborne crude. However, new sanctions imposed in October on Russia’s top oil producers have made procurement more complex.
As a result, Indian refiners have gradually scaled back purchases while expanding ties with suppliers in the Middle East, Africa, and Latin America.
Broader Diversification Efforts
IOC’s recent buying activity highlights a broader diversification trend. Last month, the company imported Colombian crude for the first time under an optional supply deal with state-owned Ecopetrol. It also purchased Ecuadorean Oriente crude for the first time.
These moves underline IOC’s effort to reduce supply risks and maintain stable refining operations amid volatile global energy markets.
Outlook for Indian Oil Imports
Looking ahead, analysts expect India to continue sourcing oil from a more diverse pool of suppliers. While Russian crude is unlikely to disappear entirely from India’s import mix, its share may remain lower as long as sanctions persist.
For now, IOC’s latest purchases reflect both market pragmatism and geopolitical caution, as India navigates a complex global energy landscape.
