The state-run refiner of India has completed a purchase of Basrah Medium grade oil from trader Vitol for loading between Oct 22 and 31. Indian Oil Corp bought 2 million barrels at a discount of $32 per barrel relative to the Dubai marker on a free on board basis from the Basrah terminal, according to sources. This transaction follows previous spot tenders in which the company sought cargoes to secure late-month refinery supplies.

The deal coincides with Iraq’s state oil marketer offering October contractual supplies at discounts of up to $37 per barrel to regional benchmarks. Baghdad has deepened these cuts to offset high freight costs and risks associated with shipping through the Strait of Hormuz during the Middle East war, a situation worsened by Iraq's distance from the strait and its lack of a significant shipping fleet. Despite these transit costs, the pricing provides IOC with a net saving of about $12 per barrel per voyage.