September 5, 2025

Hold your breath, oil lovers! Indian Oil Corporation (IOC), the top Indian refiner, made a surprising move in its latest oil buying spree. Instead of picking up the usual U.S. crude, IOC skipped the American black gold this time. Trade sources revealed that IOC bought 2 million barrels of West African oil and 1 million barrels of Middle Eastern grade oil. What's more? It scooped up 1 million barrels each of Nigerian oil grades Agbami and Usan from the French giant TotalEnergies, plus another 1 million barrels of Abu Dhabi's Das crude from Shell. Talk about jet-setting in the oil world! The Nigerian oil came on a free-on-board basis, meaning Nigeria handled shipping until the port, while the Abu Dhabi Das crude was bought on a delivered basis, ready to touch Indian shores by late October or early November. Just a week earlier, IOC had scooped up 5 million barrels of U.S. West Texas Intermediate crude. So, what changed? Indian refiners had been enjoying a sweet deal on U.S. oil recently, thanks to a favorable arbitrage window that made American crude more attractive. They raised their U.S. oil buys to ride this wave. Plus, buying more U.S. oil helped India chip away at its massive trade surplus with the U.S., which had turned bitter by doubling tariffs on Indian imports to a whopping 50%, blaming India for buying Russian oil. However, this time, the landed cost of U.S. crude was too high compared to other oils. Even though Brent-WTI price difference stayed around $4 per barrel, the extra costs made U.S. oil less tasty. So, IOC switched gears, choosing the cheaper but rich alternatives from West Africa and the Middle East. This smart shuffle shows how Indian refiners juggle costs, trade politics, and supply sources to keep the oil flowing. With the global oil game changing fast, who knows what surprises IOC has in store next?

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Tags: Indian oil corporation, Us crude oil, West african oil, Middle eastern oil, Oil purchase, Crude oil tender,