IOC Secures 7 Million Barrels of Crude Oil from the Middle East and Africa

Indian Oil Corporation (IOC), the largest refiner in India, has acquired 7 million barrels of crude oil from the Middle East and Africa through spot market tenders. This includes a rare purchase of Abu Dhabi’s Murban crude oil. The move comes as U.S. sanctions against Russia are expected to disrupt supplies, tightening availability globally.

French energy giant TotalEnergies, through its trading arm Totsa, sold 2 million barrels of Murban crude to IOC, according to trade sources.

Additional Crude Oil Purchases

IOC also secured other shipments through tenders, including:

• A very large crude carrier (VLCC) from Shell contains 1 million barrels each of Nigeria’s Agbami and Akpo crude, as well as 1 million barrels of Gabon’s Rabi Light crude.
• Another VLCC from Chevron carrying 1 million barrels of Nigeria’s Agbami and Angola’s Nemba crude.

These purchases were reportedly concluded on a delivered basis, although pricing details were not disclosed.

Increased Middle East Oil Purchases

Indian refiners are ramping up Middle Eastern crude imports from spot markets to counteract supply disruptions caused by sanctions on Russian producers and tankers. This shift has also tightened shipping availability.

High Spot Premiums Reflect Strong Demand

Spot premiums for Middle Eastern crude oil hit their highest level in over 2 years on Thursday. Rising demand from major importers like China and India, seeking alternatives to Russian and Iranian supplies, has driven prices higher.

Future Tenders Issued by IOC

Earlier this week, IOC floated tenders to purchase sour and sweet crude for loading between late February and early March, reflecting its proactive strategy to secure steady supplies amid global uncertainties.

About Indian Oil Corporation Limited

Indian Oil Corporation Limited, commonly known as IndianOil, is an Indian multinational company in the oil and gas sector. It is owned by the Government of India and operates under the Ministry of Petroleum and Natural Gas. Although registered in Mumbai, the company’s headquarters are located in New Delhi.

Indian Oil Corporation share price is trading at ₹127.21, up by ₹0.11 (0.087%) as of 9:43 AM IST on January 17. The stock opened at ₹127.00, reached a high of ₹128.40, and a low of ₹126.50 during the session. With a market capitalisation of ₹1.80 lakh crore, it has a P/E ratio of 9.99 and a dividend yield of 9.43%. The 52-week high is ₹196.80, while the 52-week low is ₹121.16.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.