Delhi, January 23: India’s largest oil refiner, IOC (Indian Oil Corporation) has purchased 7 million barrels of crude oil from Brazil, Angola, and UAE. Completely shifting away from the Russian market.
According to Reuters, IOC has bought 1 million barrels of Murban crude from Abu Dhabi’s Shell, 2 million barrels of Upper Zakum from trader Mercuria, from Angola 1 million barrels each of Hungo and Clove grades from Exxon, while 2 million barrels of Buzios crude were bought from Brazil’s Petrobras under a flexible and optional contract.
Due to confidentiality terms companies have not said any public comment on the deal as pricing details for the cargoes were not immediately available. This deal implies that Indian refiners does not want to solely rely on the Russian market as it made the relationship between India and US deteriorating. Though completely isolating Russia s trade can lead to international complications. Russian crude oil imports in India, imports have reached its lowest in the past 2 years. As for other OPEC countries such as Middle East, Africa, and Latin America, the imports have climbed to an 11-month high.
Experts suggest India’s trade interests can be supported in Middle Eastern and Atlantic Basin. IOC has already started taking deliveries from Colombia and Ecuador under optional supply contract, pointing a possibility of expansion into new suppliers.
Many geo-political issues have reshaped the decision of trade deals, patterns of international trade, Refine Industry is navigating its way through these problems by seeking alternative supply routes.
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