Indian Oil buys 3 million barrels from Middle East and Africa

Indian Oil Corporation, the country's largest refiner by capacity, has secured three million barrels of crude oil from the Middle East and West Africa. The purchases are scheduled for delivery in November at several Indian ports, according to trade sources cited by Reuters on Wednesday.

Crude grades split evenly across bids

The acquisitions were distributed equally among three specific grades: UAE's Murban, Iraq's Basra Medium, and Angola's Nemba. These volumes were procured through competitive bidding processes.

This procurement activity occurs as Indian refineries face a shortage in Russian supply. Earlier reports from Reuters on September 28 indicated that four trade sources expected available Russian supplies to India to decline during October and November. This projected drop is attributed to lower exports and intensified competition from China, compelling Indian refiners to purchase more expensive alternatives.

Pricing varies by grade and seller

Trafigura sold one million barrels of Murban crude for delivery at Vadinar port. The transaction carried a premium ranging between $13 and $14 per barrel over the dated Brent price.

Mercuria sold one million barrels of Basra Medium crude for delivery at Chennai. The pricing for this lot was approximately equivalent to the dated Brent benchmark.

Chevron sold one million barrels of Angolan Nemba crude. This sale included a premium of $18 per barrel above the dated Brent price.