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India’s top state-owned refiner, Indian Oil Corporation (IOC), has adjusted its import strategy by reducing purchases of US crude oil and increasing imports from West Africa and the Middle East.
According to trade sources, in recent weeks, IOC has signed deals to buy a total of 3 million barrels of crude oil, including 1 million barrels each of Nigerian Agbami and Usan grades from TotalEnergies, and 1 million barrels of Abu Dhabi’s Das crude from Shell. The shipments are expected to arrive in India between late October and early November.
Notably, these deals came just a week after IOC purchased 5 million barrels of US West Texas Intermediate (WTI) crude oil. The shift in choice reflects New Delhi’s cautious approach to balancing its energy sources amid geopolitical tensions and energy security concerns.
India emerged as a major buyer of Russian oil since 2022, when Moscow offered discounted prices following the Ukraine conflict. However, the recent campaign by the administration of US President Donald Trump to squeeze Russia’s energy profits has forced Indian state-owned refiners to curb their transactions and stop further purchases since late July.
Turning to West African oil, especially from Nigeria, not only helps India diversify its imports but also presents opportunities for African oil-exporting countries. Nigeria and Angola are expected to benefit from increased Indian demand, contributing to much-needed revenue stability in the face of fierce competition in the global oil market.
This shift demonstrates how India, the world’s third-largest crude oil importer, is tactfully adjusting its energy strategy to minimize risks and maintain supply stability in a volatile international market.
In late August, President Donald Trump raised tariffs from 25% to 50% on Indian goods, matching the highest rate imposed on any partner, in response to New Delhi’s continued purchase of discounted Russian oil. This affects about 55% of the total $87 billion worth of Indian exports to the US, particularly hurting the textile, leather, pearl, seafood, furniture, and chemical industries. India estimates it could lose up to 2 million jobs and suffer losses of several billion dollars as small businesses lose their competitive edge.
Oil tanker tracking data shows that Russian crude oil shipments to India during the four weeks ending August 31 averaged below 1.3 million barrels per day, about a third less than the recent peak in March.
Title: US Tariff Hike: BRICS Nations Defiant in the Face of 50% Tax on Russian Oil Imports
“India asserts that the recent decline in Russian oil imports is merely a result of already-high inventory levels. With a strategic eye, India is ensuring its energy security by diversifying sources and managing stock levels, all while navigating the complex geopolitical landscape.”
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