India's Oil Diversification Expands Global Supply Options
India's oil refineries are expanding their search for crude beyond traditional supply sources, seeking more flexible and cost-effective options in an increasingly globalized market.
The country's dependence on imports has increased to nearly 90%, making it imperative to diversify its supply chains. This shift does not mean replacing one supplier with another but rather evaluating the economics of each cargo, including price, logistics, and quality, when making purchasing decisions.
Arun Kumar Singh, Chairman and CEO of Oil and Natural Gas Corporation (ONGC), noted that spot purchases account for over 60% of India's oil imports, with prices playing a decisive role in supply decisions. This dynamic allows refineries to compare different grades and origins of crude when competitively priced barrels are available.