Indian Oil Corp (IOC), India’s top refiner, has purchased around six million barrels of crude oil from West Africa and the Middle East, traders said, as Indian refiners continue to avoid Russian supplies amid New Delhi’s efforts to advance a trade deal with Washington.
The purchases underscore a shift in India’s crude sourcing strategy at a time when geopolitical considerations are increasingly influencing trade flows. Refining and trading sources said Indian refiners are not taking up Russian crude offers for March and April loadings and are expected to stay away from such trades for an extended period.
According to traders, IOC bought Angola’s Pazflor crude and Nigeria’s Agbami crude from Totsa, the trading arm of TotalEnergies. The refiner also purchased Nigeria’s Akpo and Bonny Light grades from Shell. The cargoes are expected to load over March and April.
India emerged as one of the largest buyers of Russian oil following Moscow’s invasion of Ukraine in 2022, snapping up discounted barrels shunned by Western buyers. Russian crude has since accounted for a significant share of India’s oil imports, helping refiners cut costs and boost margins.
However, sources said Indian state refiners have recently slowed or halted purchases of Russian crude, citing diplomatic sensitivities and the government’s broader trade and strategic priorities. New Delhi is seeking to deepen economic ties with the United States, including through a potential trade agreement, and is wary of moves that could complicate negotiations.
“State refiners are being cautious,” said one refining source. “There is no official ban, but Russian offers for March and April are not being taken.”
Indian Oil did not immediately respond to a request for comment.
The renewed interest in West African crude reflects its attractiveness to Indian refiners due to its high quality and suitability for producing transport fuels. Nigerian grades such as Bonny Light and Akpo are light and sweet, making them easier to process and yielding higher-value products.
Middle Eastern and West African suppliers have been working to regain market share in Asia after losing ground to discounted Russian barrels over the past two years. Traders said recent buying by Indian refiners suggests some rebalancing of flows.
Market participants said the pullback from Russian oil could tighten supply options for Indian refiners and potentially raise feedstock costs if discounts narrow. However, refiners may be willing to absorb higher costs to reduce geopolitical risk and ensure smoother trade relations with Western partners.
Globally, oil markets remain sensitive to shifts in trade patterns as sanctions, shipping constraints and diplomatic manoeuvring reshape traditional flows. Any sustained reduction in Indian demand for Russian crude could force Moscow to redirect supplies elsewhere, intensifying competition in other Asian markets.
India is the world’s third-largest oil importer and consumer, and changes in its buying behaviour are closely watched by traders and producers alike. Analysts said future crude sourcing decisions will depend not only on price and quality, but increasingly on foreign policy considerations and trade diplomacy.
For now, traders expect Indian refiners to continue favouring Middle Eastern and Atlantic Basin grades for near-term delivery, while keeping their options open should market and political conditions change.
