Faith Nyasuguta
India’s state-run refining giant, Indian Oil Corporation (IOC), has made a bold shift in its procurement strategy, opting out of U.S crude in favor of oil from Nigeria and the Middle East. In its latest tender, IOC bought 2 million barrels of Nigerian crude from TotalEnergies (Agbami and Usan grades), along with 1 million barrels of Abu Dhabi’s Das crude from Shell.
These purchases are for delivery between late October and early November, signaling a deliberate move away from American barrels that IOC had purchased only a week earlier.
This strategic pivot reflects broader geopolitical and strategic realignments. While U.S barrels once gained favor due to arbitrage opportunities, their higher landed cost has made other grades more attractive. Additionally, rising trade tensions – marked by U.S tariffs as high as 50% on Indian goods – have pressured New Delhi to diversify away from volatile supply chains.
IOC’s latest procurement is part of a larger realignment: by August, both IOC and compatriot refiners like Bharat Petroleum Corporation Ltd (BPCL) had collectively secured more than 22 million barrels of non-Russian crude for September–October deliveries. These included cargoes from Brazil, Libya, Saudi Arabia, Nigeria, Canada, and the U.S – yet notably excluded Russian-origin barrels amid mounting U.S and Western pressure.
India’s reshuffle extends beyond liquid commodity flows – it signals a shift in energy diplomacy. Russia, once a dominant supplier offering deeply discounted crude, has seen its share dip amid international pressure and logistical constraints. Meanwhile, supplies from Africa and Latin America have increased: African crude imports to India nearly doubled to 330,000 barrels per day in February, and Russian volumes slipped to their lowest since early 2024.
This reorientation provides a lifeline to African producers like Nigeria and Angola. India’s growing appetite for their crude helps stabilize their export revenues during a time of global volatility. It also reflects New Delhi’s broader goal: securing affordable, reliable energy while mitigating geopolitical risks and keeping energy security paramount.
In short, India’s oil strategy is undergoing a thoughtful evolution- eschewing U.S barrels despite past trade incentives, turning toward Africa and the Middle East, and stepping cautiously around Russian supply. The playbook highlights how geopolitics, economics, and energy security continue to drive India’s decisions at the dawn of a changing global oil scene.
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