Indian Oil raises spot crude buying to record share

Bloomberg reports that Indian Oil Corp. sourced as much as 84% of its crude through spot-market purchases during the April–June quarter, compared with its usual approach of securing about half of its requirements through long-term contracts with Gulf producers. The change followed regional conditions that altered established Middle Eastern supply flows. Russian crude accounted for as much as 54% of the company’s imports during the quarter.

Indian Oil imported approximately 1.4 million barrels per day, representing about 27% of India’s overseas crude purchases. Management expects to return to a more traditional procurement mix as regional shipping routes normalize, citing the proximity and long-term reliability of Middle Eastern producers. The company’s crude requirements are also expected to increase as expansions at its Panipat, Barauni and Gujarat refineries add 347,000 barrels per day of processing capacity by December.

The purchasing shift illustrates how large refiners can adjust sourcing strategies to maintain operations as trade routes and regional supply patterns change. Investors are also monitoring Strait of Hormuz shipping patterns and the broader crude supply-to-demand balance, which can influence global trade flows, refinery purchasing and commodity markets.

Source: Bloomberg
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