India’s IOC bought Angolan and Nigerian crude in its latest buy tender for April delivery as it finds alternatives to Russian supply, while a revised Angolan March loading schedule showed little change to the preliminary plan.

India’s IOC bought 2 million barrels of Nigerian Okwuibome crude from Vitol and 1 million barrels each of Nigerian Akpo and Angolan Mostarda grades from Shell in its latest tender for April delivery, trade sources said on Monday.

That follows on from its tenders for February and March arrival, issued earlier in January, in which IOC bought 5 million barrels of West African crude in total, comprising Nigerian Agbami and Akpo, Angolan Nemba and Gabon’s Rabi Light.

The purchases come after the U.S.’ announcement earlier this month of sweeping sanctions targeting Russian producers and tankers, disrupting shipments from the world’s No. 2 producer.

The sanctions announcement prompted West African crude sellers to lift offer levels, but upward price momentum hit a plateau as buyers were reluctant to pay up given steeper backwardation and higher freight costs, trading sources said of the recent state of the market.

A revised Angolan loading schedule showed a small downward revision in March loadings, to 991,000 barrels per day (bpd) from 993,000 bpd in the preliminary plan.

Otherwise on Angolan grades, at the end of last week one seller was offering March-loading Nemba at dated Brent plus $1.50, while Olombendo was offered at dated Brent plus $3.50, a trader said.
Source: Reuters