Indian state refiners step up non-Russian oil purchases

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.

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 US President Donald Trump.

“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 bought 2 million barrels of US Mars crude, 2 million barrels of Brazilian grades, and another 1 million barrels of Libyan crude on a delivered basis, the sources said.

BP sold the high-sulphur Mars crude cargo at $1.5-$2 a barrel above September Dubai quotes, they added. European trader Petraco sold the 1 million barrels of Libyan Sarir and Mesla crude and Totsa, the trading arm of TotalEnergies, sold the 2 million barrels of Brazilian Sepia and Sururu crude, the sources said. The prices for these cargoes were not immediately available.

Those deals follow IOC’s purchase of 8 million barrels of September delivery crude from the Middle East, US, Canada and Nigeria via tenders in the past week.

Reuters