Indian Oil Buys Crude From US, Canada, Mideast

India’s largest refiner, Indian Oil Corporation (IOC), has purchased 7 million barrels of crude oil for September delivery, sourced from the United States,

Canada, and the Middle East, according to trade sources cited by Reuters on Monday. The significant purchase comes after IOC and other Indian state refiners temporarily halted Russian oil imports due to narrowing price discounts and heightened scrutiny from the United States and European Union over energy trade with Moscow. The bought cargo includes:

• 4.5 million barrels of US West Texas Intermediate (WTI) Midland crude
  
  
• 500,000 barrels of Western Canadian Select (WCS)
  
  
• 2 million barrels of Das crude from Abu Dhabi
  
  

Geopolitical and Market Context

The decision reflects both commercial pragmatism and rising geopolitical risks. India had become the largest buyer of seaborne Russian crude, but tighter Western sanctions and the diminishing discount window have prompted a short-term recalibration. “The higher-than-normal purchases are partly to replace Russian barrels,” two trading sources confirmed to Reuters.

While Indian refiners are not subject to Western sanctions, U.S. President Donald Trump recently warned countries against continuing trade with Russia’s energy sector, underlining a growing diplomatic fault line.

Who’s Shipping the Crude?

According to IOC’s recent tender:

• Phillips 66 and Equinor will each deliver 1 million barrels of WTI Midland
  
  
• Mercuria will supply 2 million barrels of WTI Midland
  
  
• Vitol will deliver 1 million barrels of WTI Midland and WCS
  
  
• Trafigura will ship 2 million barrels of Das crude
  
  

The pricing details of these deals were not disclosed.

India's Oil Strategy: Balancing Energy Security and Global Relations

India, the world’s third-largest oil importer, continues to tread a delicate path — securing energy at competitive prices while managing international expectations.

Indian refiners such as IOC, HPCL, BPCL, and MRPL have not sought Russian barrels in recent weeks, as reported by Reuters, though a long-term halt has not been formalised.

This shift also coincides with the EU’s new sanctions targeting Russian energy logistics, adding further complexity for buyers navigating post-invasion supply lines.