As sanctions imposed by US President Donald Trump on Russia over war with Ukraine continue, Indian refiners have taken more interest in Nigerian crude oil. Reuters reports that India’s biggest state refiners, Indian Oil Corp and Bharat Petroleum, have bought at least 22 million barrels of non-Russian crude for delivery in September and October, trade sources said, after the US pressured India to halt purchases from Russia.
The news agency quoted a source close to the purchases as saying: “Those deals follow IOC’s purchase of eight million barrels of September delivery crude from the Middle East, US, Canada and Nigeria via tenders in the past week. “India’s second biggest state refiner BPCL (BPCL.NS), bought nine million barrels of oil through negotiations for September arrival.
“That included one million barrels of Angola Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban and two million barrels of Nigerian oil,” Indian state refiners had been largely absent from the spot market since 2022, instead becoming one of the few purchasers of cheaper Russian crude after Russia’s invasion of Ukraine.
They paused Russian purchases in late July after pressure from President Trump. The report added that European trader, Petraco, sold the one million barrels of Libyan Sarir and Mesla crude and Totsa, the trading arm of TotalEnergies (TTEF.PA) sold the two million barrels of Brazilian Sepia and Sururu crude, the sources said. The prices for these cargoes were not immediately available.
“As President Trump is applying pressure on the country of India, not individual entities, no doubt… there will be discussion between the government and those refiners continuing to import,” said Harry Tchilinguirian, group head of research at Onyx Capital Group.
In its latest tender, IOC (IOC. NS) bought two million barrels of US Mars crude, two million barrels of Brazilian grades, and another one million barrels of Libyan crude on a delivered basis, the sources said. BP (BP.L) sold the high-sulphur Mars crude cargo at $1.5- $2 a barrel above September Dubai quotes, they added. Companies typically do not comment on crude deals, citing confidentiality.
The combined spot purchases by the two state refiners for September and October are equivalent to about six per cent of India’s crude processing in May, Reuters calculations showed. The arbitrage economics of sending Atlantic Basin grades to Asia have also improved for Asian refiners, supporting these purchases, the sources said.