IOC and BPCL Purchase 22 Million Barrels of Non-Russian Crude After US Pressure

As per Reuters, Indian Oil Corporation and Bharat Petroleum Corporation, India's largest state refiners, have purchased at least 22 million barrels of non-Russian crude for September and October delivery. This marks a significant shift after US President Donald Trump pressured India to halt Russian crude purchases in late July.

IOC Secures 5 Million Barrels from US, Brazil, and Libya

As per the report, in its latest tender, IOC bought 2 million barrels of US Mars crude, 2 million barrels of Brazilian grades, and 1 million barrels of Libyan crude on a delivered basis. BP sold the high-sulphur Mars crude cargo at $1.5-$2 per barrel above September Dubai quotes, whilst European trader Petraco sold Libyan Sarir and Mesla crude, and Totsa sold Brazilian Sepia and Sururu crude.

BPCL Acquires 9 Million Barrels Through Direct Negotiations

India's 2nd biggest state refiner, BPCL, bought 9 million barrels through negotiations for September arrival, including 1 million barrels of Angola Girassol, 1 million barrels of US Mars, 3 million barrels of Abu Dhabi Murban, and 2 million barrels of Nigerian oil. These purchases complement IOC's earlier acquisition of 8 million barrels from the Middle East, the United States, Canada, and Nigeria.

Read More: Crude Oil Prices Rise as Trump Targets India with 50% Tariffs!

Strategic Shift from Russian Crude Dependency

Indian state refiners had been largely absent from spot markets since 2022, instead becoming one of the few purchasers of cheaper Russian crude. The recent pause in Russian purchases following US pressure marks a significant policy realignment for India's energy security strategy and crude procurement patterns.

Conclusion

IOC and BPCL's purchase of 22 million barrels of non-Russian crude for September-October delivery represents a major procurement strategy shift following US pressure to halt Russian purchases. With IOC securing 5 million barrels from the US, Brazil, and Libya, and BPCL acquiring 9 million barrels from diverse sources, Indian state refiners demonstrate adaptability in crude sourcing amid changing geopolitical pressures.

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