IOC buys 7 million barrels of Middle Eastern, African crude oil via tenders

Indian Oil Corp (IOC), the country's top refiner, has bought 7 million barrels of spot Middle Eastern and African crude oil via tenders, including a rare purchase of Abu Dhabi's Murban, as US sanctions are expected to hit supplies from Russia, trade sources said on Friday.

Indian refiners are increasing Middle Eastern crude purchases from the spot markets after Washington last Friday announced sweeping sanctions targeting Russian producers and tankers, disrupting supply from the world's No. 2 producer and tightening ship availability.

Totsa, the trading unit of French major TotalEnergies, sold the 2-million-barrel Murban crude cargo to IOC, the sources said.

 

IOC's other purchases include a very large crude carrier containing 1 million barrels each of Nigeria's Agbami and Akpo crude and 1 million barrels of Gabon's Rabi Light from Shell, and another VLCC of 1 million barrels each of Agbami and Angolan Nemba crude from Chevron.

The deals were likely concluded on delivered basis, the sources said, although prices were not immediately available.

The companies typically do not comment on commercial deals.

IOC earlier this week floated tenders seeking sour and sweet crude for loading between the second-half of February and the first-half of March.

Spot premiums for Middle East crude extended their rally on Thursday to their highest in more than two years as strong demand from top importers China and India to replace sanction-hit supplies from Russia and Iran drove up prices.