India’s state-owned Indian Oil Corporation (IOC) has shifted its crude oil purchases to Nigeria and the Middle East, bypassing the United States as trade disputes with Washington intensify.
According to Reuters, IOC’s latest tender saw the company procure two million barrels of Nigerian crude—split evenly between Agbami and Usan grades—from TotalEnergies, alongside one million barrels of Abu Dhabi’s Das grade from Shell.
The shipments are slated to reach Indian ports between late October and early November 2025.This move marks a significant pivot from IOC’s previous tender, which included five million barrels of US West Texas Intermediate (WTI) crude.
The shift comes as India navigates escalating tensions with the US, fueled by New Delhi’s continued purchase of discounted Russian oil since 2022.
India, now Russia’s largest seaborne oil buyer following Western sanctions over the Ukraine war, has faced criticism from the US, with former President Donald Trump, recently returned to office, imposing a 50% tariff on Indian goods.
The US accuses India of indirectly supporting Russia’s war efforts by purchasing its oil and reselling refined fuels at a profit.
US Treasury Secretary Scott Bessent has accused India of profiteering, while Commerce Secretary Howard Lutnick urged New Delhi to resume trade talks and align with US policies, stating, “We are the consumers of the world.”
However, India’s Finance Minister Nirmala Sitharaman remained defiant, telling CNN-News18, “We will buy from the place which suits our needs—whether in terms of rates or logistics. It’s our decision.”
She emphasized that crude oil and refined fuels, which account for roughly a quarter of India’s imports in the fiscal year ending March 2025, are critical to the country’s economy.
Meanwhile, Nigeria’s crude production has surged to over 1.7 million barrels per day (bpd), a 16.6% increase from September 2024 and the highest in seven months.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) credits enhanced security in the Niger Delta, which has slashed oil theft from 300,000 bpd to under 5,000 bpd.
With 46 active rigs compared to just eight in 2021, and renewed interest from international oil companies in deepwater projects, Nigeria’s oil sector is rebounding.
As crude exports drive two-thirds of government revenue and over 80% of foreign exchange inflows, this uptick could bolster Nigeria’s fiscal stability and strengthen the naira.
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