IOC Buys 7 Million Barrels from Brazil, Middle East to Cut Dependence on Russian Oil

Indian Oil Corporation (IOC), the country's largest refinery, purchased 7 million barrels of oil from several countries, including Brazil's Petrobras, to offset the reduction in Russian oil in March. Domestic refineries are shifting strategies to distance themselves from their top supplier, Russia, and increase imports from the Middle East. This move could help India reach a trade agreement with the US to reduce tariffs.

According to sources, IOC purchased 1 million barrels of Abu Dhabi's Murban grade from Shell and 2 million barrels of Upper Zakum grade from trader Mercuria. It also purchased 1 million barrels of Angola's Hango and Clove grades from Exxon. IOC also purchased 2 million barrels of Brazil's Buzios oil from Petrobras under an optional contract, which facilitates negotiations on mutually agreed terms.

However, due to the company policy of maintaining secrecy, the companies did not reveal the value of oil purchases. According to the data, oil imports from Russia in December fell to the lowest level in two years, but the proportion of oil supplied from OPEC nations rose to an 11-month high. India has become the biggest client of discounted Russian crude oil from offshore supplies since the Ukraine war began in 2022. Last month, IOC bought crude oil from Colombia under an option contract from Ecopetrol, a state-owned oil company, and also bought crude oil from Ecuador, a type of oil known as Oriente crude oil, for the first time.