Nigeria’s crude oil exports are expected to surge in September and October following significant purchases by Indian refiners.
Indian Oil Corp (IOC) and Bharat Petroleum Corp (BPCL), the country’s largest state refiners, have acquired at least 22 million barrels of non-Russian crude for delivery during these months.
The move comes after the US pressured India to reduce its reliance on Russian oil.
A Reuters report quoting trade sources said India’s biggest state refiners, Indian Oil Corp and Bharat Petroleum, have bought at least 22 million barrels of non-Russian crude for delivery in September and October, after the U.S. pressured India to halt purchases from Russia.
Indian state refiners had been largely absent from the spot market since 2022, instead becoming one of the few purchasers of cheaper Russian crude after Russia’s invasion of Ukraine.
They paused Russian purchases in late July after pressure from U.S. President Donald Trump.
According to the report, in its latest tender, IOC bought 2 million barrels of U.S. Mars crude, 2 million barrels of Brazilian grades, and another 1 million barrels of Libyan crude on a delivered basis, the sources said.
BP sold the high-sulphur Mars crude cargo at $1.5-$2 a barrel above September Dubai quotes, they added.
European trader Petraco sold the 1 million barrels of Libyan Sarir and Mesla crude and Totsa, the trading arm of, sold the 2 million barrels of Brazilian Sepia and Sururu crude, the sources told Reuters. The prices for these cargoes were not immediately available.
Those deals follow IOC’s purchase of 8 million barrels of September delivery crude from the Middle East, U.S., Canada and Nigeria via tenders in the past week.
India’s second biggest state refiner BPCL bought 9 million barrels of oil through negotiations for September arrival, Reuters quoted a source familiar with the purchases.
That included 1 million barrels of Angola Girassol, 1 million barrels of U.S. Mars, 3 million barrels of Abu Dhabi Murban and 2 million barrels of Nigerian oil, he said.
Companies typically do not comment on crude deals, citing confidentiality.
The combined spot purchases by the two state refiners for September and October are equivalent to about 6% of India’s crude processing in May, Reuters calculations showed.
The arbitrage economics of sending Atlantic Basin grades to Asia have also improved for Asian refiners, supporting these purchases, the sources told Reuters.
