Indian Oil Bids $23 Higher for Libyan Crude Amid Global Supply Concerns

Indian Oil Corporation has purchased one million barrels of Libya's Sarir/Mesla crude for November delivery at a price that is $23 per barrel higher than October Brent prices. This premium is the highest among various African grades, all priced against Brent, according to trade sources cited by Reuters.

The shipment was sold as part of a four-million-barrel tender that also covered supplies from Nigeria, Angola, and Iraq. Mercuria supplied the Libyan crude, while Glencore provided one million barrels each of Nigeria's Utapate crude and Angola's Cabinda at premiums of $21 and $17 per barrel above October Brent prices, respectively.

Trafigura sold a million barrels of Iraq's Basrah Heavy at around $14 per barrel above October Dubai prices. This tender was announced against a backdrop of disruptions to Libyan production and Saudi exports, which had pushed oil prices up more than $3 per barrel the previous day due to concerns about available supplies.

Libya's National Oil Corporation reported that national output remained at roughly 1.4 million barrels per day despite shutdowns affecting facilities connected to the Hamada-Zawiya pipeline. However, if these disruptions continue or worsen, the corporation warned it might declare force majeure.