OGEJOURNAL Menu

Indian Oil Buys 2m Barrels of Nigerian Crude as Prices Drop on Weak Demand

Indian Oil Corporation (IOC), India’s biggest state-owned refiner, has purchased two million barrels of Nigerian crude in its latest tender, shifting away from U.S. oil.

Industry sources said IOC secured one million barrels each of Nigeria’s Agbami and Usan grades from TotalEnergies, along with one million barrels of Das crude from Shell. The Nigerian supplies will be shipped on a free-on-board basis, while the Das cargo is being delivered directly to Indian ports between late October and early November.

The move contrasts with IOC’s previous tender last week, when it bought five million barrels of U.S. West Texas Intermediate (WTI). Indian refiners have recently increased U.S. crude purchases due to favorable price gaps and trade considerations, but higher costs appear to have steered IOC toward other markets this time.

Global oil prices also slipped last Friday, weighed down by weak U.S. job numbers, rising inventories, and speculation that OPEC and its partners could increase production. Brent crude fell by $1.88 to $65.11 per barrel, while WTI dropped by $1.94 to $61.54.

Analysts warn the combination of softer demand signals and swelling supply could keep the oil market under pressure in the near term.