Nigeria’s crude oil exports are set to surge this September and October. Reports indicate that Indian refiners are ramping up their imports of non-Russian crude.
According to a Reuters report, major Indian state refiners, like Indian Oil Corp and Bharat Petroleum, have committed to buying at least 22 million barrels of non-Russian crude for the next two months. This shift comes after increased pressure from the U.S. for India to reduce its purchases of Russian oil.
For much of 2022, Indian refiners focused on buying cheaper Russian crude. However, they paused these purchases in late July amid growing political pressure, particularly from former U.S. President Donald Trump.
In their recent tenders, Indian Oil Corp acquired various types of crude. This includes 2 million barrels of U.S. Mars crude, 2 million barrels from Brazil, and 1 million barrels from Libya. The prices paid were slightly above the market quotes in Dubai, indicating strong demand.
Bharat Petroleum also joined the fray, securing 9 million barrels for September delivery through negotiations. This haul includes crude from Angola, the U.S., Abu Dhabi, and Nigeria.
Together, the spot purchases by these two refiners are estimated to represent around 6% of India’s total crude processing from May, according to Reuters calculations. The economic factors supporting these purchases are shifting as the price dynamics of moving Atlantic Basin grades to Asia have become more favorable.
As global energy markets evolve, experts believe that competition for non-Russian oil sources will only increase. This situation shows how geopolitical events directly affect trade patterns and energy security.
To dive deeper into the topic, you can explore the implications of these changes on global oil prices and regional economies by checking out Reuters.
Source link
Crude oil,export,India,Nigeria
