India's top refiner pivots away from Russian crude with major oil purchases from Angola, Brazil, UAE

Reuters reported the information.

India's largest refiner, Indian Oil Corporation, has secured 7 million barrels of crude oil from Angola, Brazil, and the United Arab Emirates for March delivery, marking a significant pivot away from Russian supplies, according to two trade sources with knowledge of the transactions.

The purchases include 1 million barrels of Abu Dhabi's Murban grade from Shell and 2 million barrels of Upper Zakum from trading house Mercuria. The refiner also acquired 1 million barrels each of Angolan Hungo and Clove grades from Exxon, the sources said.

Additionally, Indian Oil bought 2 million barrels of Brazil's Buzios crude from Petrobras through an optional contract that allows both parties flexibility in negotiating terms. Pricing details for these transactions were not disclosed, as is typical in such deals due to confidentiality agreements.

The move reflects a broader strategic shift among Indian refiners, who are reducing their reliance on Russia—previously their top supplier—while increasing imports from Middle Eastern producers. This realignment could potentially support New Delhi's efforts to negotiate a trade agreement with the United States that would reduce tariffs.

India's Russian crude imports dropped to their lowest level in two years this past December, while purchases from OPEC member nations reached an 11-month peak, according to trade data. The shift follows tougher Western sanctions imposed on major Russian oil producers in October, which prompted Indian refiners to scale back their Russian purchases.

India had become the largest buyer of discounted Russian seaborne crude following the start of the Russia-Ukraine war in 2022. However, the recent sanctions have accelerated the country's search for alternative suppliers. Last month, Indian Oil purchased its first Colombian crude under an optional supply agreement with state oil company Ecopetrol and also bought Ecuadorean Oriente crude for the first time, further diversifying its supply base.