Indian Oil Corporation (IOC), India’s largest refiner, plans to significantly increase its purchases of Brazilian crude oil over the next two years as part of a broader strategy to diversify its sources of supply, according to an executive at the state-owned company.
The refiner is set to buy at least 24 million barrels of Brazilian crude during 2026 and 2027, up from 18 million barrels purchased last year. The move reflects India’s ongoing efforts to reduce overdependence on any single supplier and strengthen energy security amid shifting global oil markets.
Since 2022, India has relied heavily on discounted Russian crude, which continues to be a key part of its import mix. However, refiners have increasingly explored alternative suppliers in regions such as Latin America, the Middle East, and Africa to maintain flexibility and manage geopolitical and pricing risks.
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Indian Oil is also evaluating the possibility of adding Venezuelan crude to its portfolio, the executive said. However, current offers from Venezuela are priced at a discount of around $4 to $5 per barrel to the Dubai benchmark, which is less attractive for IOC. The refiner typically looks for discounts of $7 to $8 to offset the challenges of processing Venezuela’s heavy and sour crude, given its limited refining capacity for such grades.
In comparison, Russian crude is currently trading at about $8 below the Dubai benchmark, making it more economically appealing for Indian refiners. Price competitiveness, along with compatibility with existing refining infrastructure, remains a key factor in procurement decisions.
An Indian Oil spokesperson did not immediately respond to requests for comment. The company’s evolving sourcing strategy highlights how Indian refiners are balancing cost considerations with long-term supply diversification as global energy trade patterns continue to shift.
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