India Buys 06 Million Barrels Of Crude From Africa And Middle East To Diversify From Russia.

New Delhi; February 2026: India’s largest state-owned refiners have sharply increased purchases of crude oil from West Africa and the Middle East in a notable shift away from Russian supplies as New Delhi seeks to strengthen its negotiating position with Washington on a potential trade deal, industry sources say.

In tenders issued last week, Indian Oil Corporation (IOC) secured around 06 million barrels of crude from West African and Middle Eastern producers for delivery in April 2026. The purchases include Angolan Pazflor and Nigerian Agbami grades from trading house Totsa, and Nigerian Akpo and Bonny Light grades from Shell, according to two sources. IOC also purchased approximately 02 million barrels of Upper Zakum crude from Mercuria, produced in the United Arab Emirates.

Crude purchases from Angola are helping India reduce reliance on Russian oil amid EU and US glares.
The deal highlights Angola, sub-Saharan Africa’s second-largest oil exporter, as a key supplier for Asian refiners, offering politically stable, high-quality crude. At the same time, while the US relies on tariffs to discourage Russian oil sales, the EU is pursuing trade and defense incentives, giving Africa’s oil-rich nations an opportunity to leverage their strategic advantage

In an unprecedented global geo-political architecture, demands for Angola’s Hungo and Clove Grades catapults in demand, backed by the fact that Indian Oil acquired 01 million barrels each of Angola’s Hungo and Clove crude grades from ExxonMobil.

Angola, sub-Saharan Africa’s second-largest oil producer after Nigeria, pumps around 1.1 million barrels per day and remains a key supplier of medium-to-light sweet crude favoured by Asian refiners for its high transport fuel yield. The Angolan barrels were part of a broader slate Indian Oil assembled to replace Russian supplies.

Furthermore, Indian Oil also purchased 01 million barrels of Abu Dhabi’s Murban crude from Shell; 02 million barrels of Upper Zakum from trader Mercuria; 02 million barrels of Brazil’s Buzios grade from Petrobras under an optional contract that allows flexible pricing and delivery terms.

Africa’s role in the reshuffle is drawing attention as India recalibrates its crude import strategy. While Russia emerged as India’s top oil supplier after the Ukraine war began in 2022, shipping millions of barrels at discounted prices, refiners have been forced to diversify again following tougher sanctions imposed in October on major Russian producers and traders. Trade data show India’s imports of Russian crude fell to a two-year low in December, while the share of supplies from OPEC members rose to an 11 months high.

It is noteworthy that Angola’s Hungo and Clove grades are particularly attractive for Asian buyers due to their consistent quality and compatibility with complex refineries. The country holds proven oil reserves of about 7.78 billion barrels and has been seeking to stabilise output while attracting new investment to mature offshore fields.

India’s recalibration comes as New Delhi seeks to strengthen trade ties with the United States and reduce exposure to sanctions-related risks. The strategy may extend globally, as India prepares to finalize a free trade agreement and sign a new security and defence partnership with the EU, signalling a significant pivot from its BRICS partner, Russia. Rising imports from Africa and the Middle East could further support diplomatic efforts, secure favourable trade terms, and ease tariff pressures.

On the otherside, India’s export of diesel to West African countries till December 2025, had reached its peak with 155,000 barrels per day, and January shipments to 84,000 barrels per day.

But after the EU-India accord signed recently, India has not shipped any diesel to the EU. In 2025, it had exported an average of 137,000 barrels per day (bpd) to the bloc, making it the EU’s third-largest diesel supplier, according to Kpler.

Under the new rules, the EU will only allow fuel imports from refineries that can segregate Russian crude. Otherwise, refineries must not have processed any Russian crude within 60 days before the bill of lading date to continue exporting fuel to the bloc. Meanwhile, EU countries increased fuel imports from the United States and the Middle East, with volumes hitting a three-month high in January as the bloc diversified supply ahead of the ban, Kpler data showed.

Reiterating to the import of crude; it is mention worthy that, alongside these West African and Gulf purchases, state refiners Indian Oil and Hindustan Petroleum Corporation Ltd (HPCL) have together bought 02 million barrels of Venezuelan Merey crude for late April delivery, as per official sources.

Under this arrangement, IOC will take about 1.5 million barrels and HPCL 500,000 barrels aboard a single very large crude carrier destined for India’s east coast. The seller is Trafigura, though the firm declined to comment publicly. For HPCL, this marks the company’s first purchase of Venezuelan crude, while IOC has previously imported Venezuelan barrels. The move underscores continued efforts by Indian refiners to broaden their sourcing options amid geopolitical volatility and shifting global trade ties.

Trade sources note that Venezuelan oil, such as Merey, is being priced against the Dubai benchmark and has been trading at discounts of about $6.50 to $7 per barrel below ICE Brent, making it an attractive feedstock for heavy crude-processing facilities in India.

The shift in India’s import pattern comes as New Delhi and Washington press ahead with talks on a framework trade agreement that could be finalised by March. In a recent announcement, US President Donald Trump said New Delhi had “committed to stop directly or indirectly importing Russian oil, as it was necessary for India to please me”, even though India has not formally announced a halt to such imports.

Observers say the current procurement strategy may support both India’s energy security and diplomatic objectives. Analysts in the energy sector say Indian refiners are likely to continue scanning global markets for barrels not only from Africa and the Gulf but also further afield as they balance cost, quality, and geopolitical considerations.

Team Maverick.