The Indian Oil Corporation (IOC) purchased three million barrels of Russian Urals from energy and commodities trader Vitol for May delivery, Reuters reports.
This is the refiner’s first purchase of the grade ever since Russia invaded Ukraine on 24th February.
IOC had apparently said back in late February that it would acquire Russian oil on a delivered basis in order to avoid any complications related to insurance and fixing vessels.
The refiner does not oversee any problems with respect to paying for the cargo as oil as a commodity hasn’t been banned yet. Moreover, they aren’t dealing with a sanctioned entity either.
The companies involved do not typically comment on the commercial aspect of the deals. However, it is reported that Vitol sold these cargoes at a discount of $20-$25 a barrel to the dated Brent.
IOC has also bought two million barrels of Abu Dhabi’s Murban crude in addition to a million barrel each of the Cameroonian Kole along with the Nigerian Forcados and Akpo.
The western sanctions on Russia have led to many companies and countries avoiding oil from Moscow. This has depressed Russian crude to record discount levels, as reported by the international news agency.