IOC Boosts Spot Crude Purchases Amid Middle East Disruptions

Indian Oil Corporation (IOC), the country's largest oil refiner, has significantly increased its spot crude purchases to offset supply disruptions from the Middle East. According to Anuj Jain, IOC's finance head, spot purchases have risen from 50% to nearly 84% as the company continues to monitor global developments and adjust its sourcing strategy.

The shift comes after supply disruptions in the Strait of Hormuz and the Red Sea following the U.S.-Iran conflict. IOC has increased crude imports from West African and Latin American producers while continuing to rely heavily on Russian oil purchased through spot markets.

IOC and its subsidiary, Chennai Petroleum Corporation, together account for about one-third of India's 5.2 million barrels-per-day refining capacity. The company also plans to increase processing capacity to 1.7 million barrels per day by 2027-28 through refinery expansion projects.