FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: India's IOC Buys 5 Million Barrels of Crude in Supply Push

By

Indian Oil Corporation bought 5 million barrels of crude oil from West Africa and the Middle East through a tender this week, Reuters reported on Friday, citing trade sources.

The state refiner purchased Angola's Kissanje and Nemba grades for delivery to its Paradip refinery. IOC also bought Nigeria's Usan crude from Exxon Mobil (XOM) and Abu Dhabi's Murban crude from Mercuria Energy Group for delivery to Vadinar.

The energy firm acquired Murban crude from Totsa, the trading arm of TotalEnergies (TTE), for delivery to Chennai.

IOC did not immediately reply to inquiries from.

The West African cargoes traded at premiums of about $4 a barrel to dated Brent, while the Murban cargoes were sold at flat to marginal premiums against the benchmark.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: $145.69, Change: $-1.28, Percent Change: -0.87%

Related Articles

Oil & Energy

Oil Price Slide on Hormuz Disruptions Easing Could Favor Energy Importer Currencies, Macquarie Says

A drop of over $15 per barrel in Brent crude since May 18 could support the euro, pound and yen if Hormuz shipping resumes, Macquarie strategists said in a Friday note."Should crude oil prices continue to fall as a result of an opening of the Strait of Hormuz that comes with a ceasefire agreement, the beneficiaries (all else equal) will be the currencies of the energyimporting countries, such as the EUR, GBP, and JPY," according to the note.Macquarie said energy-importing economies stand to benefit the most if a ceasefire leads to the reopening of the Strait of Hormuz and pushes oil prices closer to pre-conflict levels.Markets increasingly view the reopening of Hormuz as a key condition of any extended US-Iran ceasefire, although negotiations still require approval from both US and Iranian leaders.Even if an agreement emerges, shipping activity may take time to recover because operators could first need to remove mines from the waterway.One proposal reportedly gives Iran 30 days to complete that process.As traders priced in a lower risk of prolonged disruptions, crude prices retreated sharply over the past week, helping drive gains in global bond and equity markets.The US Dollar Index has weakened only modestly since May 18, but Macquarie expects foreign-exchange markets to respond more strongly if oil prices continue falling.Higher energy costs have already pressured major importing economies. Eurozone consumer inflation reached 3% in April from about 2% before the conflict, while preliminary data point to a reading near 3.3% in May.With wage growth running near 2.5% on an annualized basis, rising prices have likely reduced real incomes across the euro area, even as expectations for a European Central Bank rate increase remain in place.The United Kingdom faces similar challenges, with May composite Purchasing Managers' Index data remaining below 50 and real wage growth showing little improvement since the first quarter, according to the report.In Japan, higher energy costs prompted the Bank of Japan to cut its 2026 growth forecast to 0.5% from 1.0% and raise its core inflation outlook to 2.8%, Macquarie said.Japanese authorities have largely relied on foreign-exchange intervention instead of tighter monetary policy, spending about $74 million in May to support the yen against speculative pressure, the report said.A Brookings Institution analysis suggests temporary supply buffers could largely disappear by July if Persian Gulf oil flows remain constrained. Under that scenario, nearly half of the roughly 15 million barrels per day that moved through Hormuz before March could be removed from the market.Macquarie said renewed Hormuz flows would therefore provide meaningful relief for oil-importing economies, supporting currencies such as the euro, pound and yen.Macquarie highlighted the Cleveland Federal Reserve trimmed mean inflation at 2.83% in May, up from 2.64% in March, with the monthly reading reaching 0.43%, or 5.2% annualized.The firm cautioned that the outlook depends on lower oil prices. If crude remains elevated, the US dollar could stay firm as inflation pressures persist and the Federal Reserve leans toward keeping a tightening bias.

Oil & Energy

US Oil Update: Crude Drops on Iran Peace Deal Optimism, Trump Lifts Hormuz Blockade

Crude futures retreated in midday trading on Friday after President Trump lifted the US naval blockade and outlined conditions for a tentative Iran peace deal that includes reopening the Strait of Hormuz, potentially easing concerns over a major disruption to global energy flows.Front-month West Texas Intermediate crude futures fell 2.43% to $86.66 per barrel, while Brent futures shed 1.97% to $91.86/bbl.US crude oil stockpiles fell by 3.3 million barrels to 441.7 mmbbls in the week ended May 22, the Energy Information Administration said in its weekly report on Thursday.Strategic Petroleum Reserve inventories dropped to 365.1 mmbbls for the week ended May 22, down from 374.2 mmbbls a week ago, marking a weekly decline of 9.1 mmbbls, EIA data showed.Crude inventories are now about 2% below the five-year average for this time of year, the EIA said."US refineries are now ramping up to supply enough gasoline and diesel for the summer season. They thus use more crude with less crude left for exports, which have now fallen to the lowest level in two months in response," said Bjarne Schieldrop, chief commodities analyst at SEB Research.On Friday, Trump said he would meet in the White House Situation Room to make a final determination on an agreement with Iran."I will be meeting now, in the Situation Room, to make a final determination," Trump said in a social media post on Truth Social.The US President said that Washington would lift the retaliatory US naval blockade in the Gulf of Oman, noting that vessels previously affected by the blockade could now return home."Ships caught in the Hormuz Strait due to our amazing and unprecedented Naval Blockade, which will now be lifted, may start the process of 'heading home!'," he said.ING strategists said the oil market is continuing to edge lower amid growing optimism that the US and Iran are moving toward a deal, noting that the reopening of the Strait would offer immediate relief to global energy markets.Meanwhile, Iran's Speaker of Parliament Mohammad Bagher Ghalibaf said in a social media post that Tehran seizes concessions not through dialogue but with missiles, adding, "in negotiations, we merely make them understand"."We have no trust in guarantees or words - only actions are the measure," Ghalibaf said in a social media post X. "No action will be taken before the other side acts."Saxo Bank strategists said that though significant hurdles remain, the market is reacting to the prospect of a supply surge once hundreds of tankers loaded with crude oil and refined fuels are released from the Persian Gulf.

Oil & Energy

EMEA Oil Update: Crude Falls After Trump Lifts Hormuz Blockade, Outlines Iran Deal Terms

EMEA crude futures dropped in after-hours trading on Friday after President Trump lifted the retaliatory US naval blockade of Iranian ports, raising expectations of increased global supply and easing concerns about supply disruptions.Brent crude futures fell by 1.91% to $91.92 per barrel, while Murban oil futures retreated 1.69% to $92.50/bbl."The oil market continues to edge lower amid growing optimism that the US and Iran are moving toward a deal," ING strategists said, adding that the reopening of the Strait would offer some immediate relief to the global energy markets.On Friday, Trump said he would meet in the White House Situation Room to make a final determination on an agreement with Iran."I will be meeting now, in the Situation Room, to make a final determination," Trump said in a social media post on Truth Social.The US President said that Washington would lift the retaliatory US naval blockade in the Gulf of Oman, noting that vessels previously affected by the blockade could now return home. "Ships caught in the Strait due to our amazing and unprecedented Naval Blockade, which will now be lifted, may start the process of 'heading home!" he said.The development comes a day after media reports suggesting that US and Iran negotiators had reached a tentative agreement for a 60-day ceasefire extension and the start of talks on Tehran's nuclear program.Saxo Bank strategists said oil fell to a five-week low after the US and Iran tentatively agreed to extend their ceasefire by 60 days, with Brent heading for its biggest monthly decline since 2020, as expectations grew that the agreement could pave the way for a gradual reopening of the Strait of Hormuz."While significant hurdles remain, the market is reacting to the prospect of a supply surge once hundreds of tankers loaded with crude oil and refined fuels are released from the Persian Gulf," the analysts said.Meanwhile, Iran's Speaker of Parliament Mohammad Bagher Ghalibaf said in a social media post that Tehran seizes concessions not through dialogue but with missiles, adding, "in negotiations, we merely make them understand"."We have no trust in guarantees or words, only actions are the measure," Ghalibaf said in a social media post X. "No action will be taken before the other side acts."