IOC Boosts Spot Crude Purchases Amid Middle East Supply Disruptions

Indian Oil Corporation (IOC) has increased its spot market purchases of crude oil to nearly 84% in response to supply disruptions in the Middle East. The state-run refiner's director of finance, Anuj Jain, noted that this shift was due to the US-Iran conflict in late February, which caused interruptions through the Strait of Hormuz and the Red Sea.

IOC has also ramped up imports from West African and Latin American producers to compensate for the reduced availability of Middle Eastern crude. The company's financial performance has been impacted by rising crude costs linked to the ongoing conflict in West Asia, with a standalone net loss of Rs 2,661 crore reported for the April-June quarter.

Despite the financial challenges, IOC achieved its highest-ever first-quarter crude throughput of 19.165 million metric tonnes, a 3% increase from 18.683 million metric tonnes a year earlier. Refinery capacity utilization improved to 109.4%, and the company's cross-country pipeline network recorded its highest quarterly throughput at 28.548 million metric tonnes, up 9% from the previous year.