Baghdad (IraqiNews.com) – Indian refiners are increasing their purchases of Middle Eastern crude from the spot market, particularly Iraqi oil, to partially replace Russian supply, according to two refining and trade sources, as New Delhi looks to assist trade talks with Washington.
According to reports, the state-run Bharat Petroleum has issued one-year tenders to buy oil from Iraq and Oman, as well as a separate tender to purchase Murban crude from the United Arab Emirates.
Reuters reported that commodity broker Trafigura has secured the tenders to import Iraq’s Basrah Medium crude and Omani oil.
According to the contracts, Bharat Petroleum intends to lift one cargo of Iraqi crude and four firm cargoes of Omani oil per quarter during the fiscal year starting in April.
The decision highlights Iraq’s growing importance as a dependable supplier to Asian refiners at a time when India is altering crude sourcing due to geopolitical concerns and efforts to rebalance trade relations with the United States.
Iraq has remained one of India’s leading crude suppliers recently, thanks to consistent output, competitive pricing, and proximity to key Asian markets.
Increased Indian demand could help Iraq boost its position in the region’s oil trade flows.
Since 2022, Indian refiners have been significant purchasers of inexpensive Russian oil, but sources say a partial return to Middle Eastern grades reflects both business factors and broader diplomatic calculations.
Iraq’s increased spot demand from India strengthens its position as a key supplier to big Asian consumers as global oil trading patterns alter.
