Indian Oil’s First Ecuadorian Crude Buy Signals a Wider Sourcing Pivot

India’s largest refiner, IOC, has secured 2 million barrels of Ecuadorian Oriente crude through a trader for end‑March arrival, marking its first tender based purchase of this grade. The deal reflects IOC’s ongoing strategy to broaden supply options, hedge geopolitical and logistics risks, and optimize refining margins by trialing new blends that complement its complex refining slate.

Key highlights

• First Oriente tender: IOC’s inaugural purchase of Ecuador’s Oriente crude via competitive tender, indicating active grade testing and commercial openness.
• Volume & timing: 2 million barrels, scheduled for end‑March delivery, aligning with Q4 FY25/26 run plans and inventory management.
• Diversification push: Expands Latin American exposure balancing reliance on Middle East and opportunistic Russian flows as discounts fluctuate.
• Refining economics: Oriente’s medium, sour profile can be attractive for complex Indian refineries seeking residue upgrading and diesel yields.
• Trader-mediated deal: Use of a trader suggests flexible logistics and pricing structures amid tight freight and arbitrage windows.
• Market signal: Potential follow‑on tenders if assay results and netbacks prove competitive versus established grades.

Sources: Reuters; Trade sources