RoydadNaft –  Indian Oil Corp, the country’s leading refiner, has purchased 7 million barrels of crude oil for March delivery to offset reduced Russian supplies, according to two trade sources familiar with the deals.

The purchases mark a clear strategic shift as Indian refiners move away from Russia — previously their top supplier — and increase sourcing from the Middle East and other regions. This adjustment could also support New Delhi’s efforts to secure a favorable trade deal with the United States, including potential tariff reductions.

Breakdown of the deals:

•  1 million barrels of Abu Dhabi’s Murban grade from Shell

•  2 million barrels of Upper Zakum grade from trader Mercuria

•  1 million barrels each of Angola’s Hungo and Clove grades from Exxon

•  2 million barrels of Brazil’s Buzios grade from Petrobras, under an optional supply contract with flexible pricing terms

Pricing details were not disclosed, as is standard in such confidential agreements between buyers and sellers.

India’s imports of Russian crude fell to their lowest level in two years in December, while OPEC countries’ share of Indian imports reached an 11-month high, according to trade data.

Following Russia’s invasion of Ukraine in 2022, India became the largest buyer of discounted Russian seaborne crude. However, purchases have declined significantly since tougher Western sanctions targeted major Russian producers in October.

In recent months, IOC has also diversified further by securing its first Colombian crude under an optional deal with Ecopetrol and purchasing Ecuadorean Oriente crude for the first time.