Indian Oil ramps up spot crude purchases as Middle East disruptions hit supplies
Indian Oil Corporation (IOC) has shifted its crude oil sourcing strategy, increasing spot market purchases to 84% due to supply chain disruptions caused by the Middle East conflict. The company reported a quarterly loss, citing higher crude costs as a primary factor.
Why it matters
The shift highlights the vulnerability of India's energy sector to regional conflicts and the resulting impact on corporate profitability and national energy security.
Supply disruptions in the Middle East have prompted Indian Oil Corporation (IOC) to overhaul its crude sourcing strategy, with the state-run refiner sharply increasing purchases from the spot market. The share of spot buying has risen from 50% to nearly 84%, IOC director (finance) Anuj Jain said on Saturday.The move comes after supplies through the Strait of Hormuz and the Red Sea were disrupted following the start of the US-Iran war in late February, pushing Indian refiners towards spot purchases.
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