Indian Oil Corporation, the country’s largest refiner, has skipped United States crude in its latest tender, opting instead for two million barrels from Nigeria and one million barrels from the Middle East, according to sources.

IOC bought one million barrels each of Nigeria’s Agbami and Usan grades from TotalEnergies, and another million barrels of Abu Dhabi’s Das crude from Shell, according to Reuters.

The Nigerian cargoes were purchased free-on-board, while the Das crude was acquired on a delivered basis for arrival at Indian ports between late October and early November.

Last week, IOC purchased five million barrels of U.S. West Texas Intermediate.

The shift coincides with Nigeria’s oil production climbing above 1.7 million barrels per day in July 2025, the first time in seven months.

Output rose 16.6 per cent from 1.54 million bpd in September 2024, bringing the country closer to its 2025 budget target of 2.06 million bpd.

The Nigerian Upstream Petroleum Regulatory Commission credited the rebound to stronger security in the Niger Delta, where crude theft once siphoned as much as 300,000 bpd but has now dropped to under 5,000 bpd.

Rig activity has also expanded, with 46 rigs in operation compared to just eight in 2021, as international oil companies move to boost deepwater projects.

Crude exports remain central to Nigeria’s economy, providing about two-thirds of government revenue and more than 80 per cent of foreign exchange earnings.

Rising output could help ease fiscal strain, strengthen reserves, and stabilize the naira.