India’s state-run refiner, Indian Oil, has paused new orders for Russian oil following the US imposition of sanctions on Moscow’s top two producers. The company has instead opted to purchase two million barrels of West African crude from ExxonMobil, comprising Mondo from Angola and Utapate from Nigeria. This development comes as India, which became the largest importer of Russian crude after Moscow’s 2022 Ukraine invasion, explores alternative sources.
Indian Oil has also invited bids for 24 million barrels of oil from the Americas for the January to March quarter in 2026, seeking both low-sulphur and high-sulphur crude oil grades. The move is seen as an effort to gauge market interest in the event that the company needs to buy oil from the Americas. Many Indian refiners have turned to the spot market for alternatives since the US imposed sanctions on Russian producers.
The shift in India’s oil procurement strategy comes amid a decline in global oil prices, which have slid for the third consecutive day. Brent crude futures were down 0.11% to $64.33 a barrel, while US crude futures fell 0.12% to $60.08. The decline in prices is attributed to doubts about the effectiveness of Russia sanctions and a potential OPEC+ output increase.
In related news, Nigeria’s crude oil production in September 2025 was 1.39 million barrels per day, a drop from 1.434 million bpd in August. The decrease was caused by a labor strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria. The country aims to increase its OPEC+ quota from 1.5mb/d to 2.06mb/d. Nigeria is also expected to boost its gas exports following the European Union’s ban on the importation of Liquefied Natural Gas from Russia.
The developments in the global oil market are being closely watched, with OPEC+ considering a modest output boost in December. The CEO of Saudi state oil giant Aramco has stated that crude oil demand remains strong, particularly in China. As the global oil landscape continues to evolve, India’s decision to pause Russian oil orders and explore alternative sources is likely to have significant implications for the market.