ALBAWABA - According to Reuters on Thursday, the Indian Oil Corporation (IOC), the country's largest state-owned refiner, has stopped buying U.S. crude oil in its most recent tender and is instead getting supplies from West Africa and the Middle East.
Reuters says that IOC bought 2 million barrels of West African crude oil and 1 million barrels of Middle Eastern crude oil, according to industry sources. The deal includes 1 million barrels of Nigeria's Agbami and Osa crude grades from French energy company TotalEnergies, as well as 1 million barrels of Das crude from the United Arab Emirates, which Shell will provide.
The Nigerian crude was bought on a Free on Board (FOB) basis, and the Das crude will be shipped directly to Indian ports between the end of October and the beginning of November.
This change comes after IOC bought 5 million barrels of U.S. West Texas Intermediate (WTI) crude in a tender last week. Indian refiners have been buying more U.S. crude oil in the last few months to take advantage of price differences and lower prices.
However, the most recent move shows that supply sources are being rebalanced because of pricing strategies, logistical issues, and changing trade patterns.
India's previous imports of U.S. crude oil had helped close the gap between the two countries' trade deficits. But recently, the United States raised tariffs on Indian goods by 50%, saying that New Delhi was still buying Russian oil. This made trade between the two countries even more tense.
Working together on energy with the Gulf
India is also trying to strengthen its energy ties with Gulf countries, which is why the decision was made. New deals with Saudi Arabia and the UAE are meant to ensure long-term supplies of crude oil and improve cooperation in the oil and gas industry.
