Reuters: Indian refiners find alternatives to Russian oil

Indian oil refineries are increasing purchases from suppliers such as Shell, Mercuria, Exxon and Petrobras as part of a move away from Russian oil.

Indian Oil Corporation (IOC), the country’s largest refiner, has purchased around 7 million barrels of crude for March loading, including supplies from Brazil’s Petrobras, to replace Russian oil, according to two trade sources familiar with the matter, Reuters reports.

Procurement strategies are being adjusted to reduce reliance on Russia as the top supplier and increase imports from the Middle East, a shift that could support New Delhi’s efforts to secure a trade agreement with the United States aimed at reducing tariffs.

IOC also bought 2 million barrels of Brazil’s Buzios crude from Petrobras under an optional contract that allows flexibility to finalise deals on mutually agreed terms, the sources said.

The pricing details were not immediately available.

India’s imports of Russian oil fell to their lowest level in two years in December, while the share of supplies from OPEC countries rose to an 11-month high, according to trade data.

India became the largest buyer of discounted Russian seaborne crude after the start of the Ukraine war in 2022, but refiners later scaled back purchases following tougher Western sanctions imposed on Russia’s major producers in October.

Last month, IOC also bought Colombian crude for the first time under an optional supply agreement with state-owned Ecopetrol and made its first-ever purchase of Ecuador’s Oriente crude.

By Jeyhun Aghazada