IOC Boosts Spot Crude Purchases Amid Middle East Tensions
Indian Oil Corporation (IOC) has significantly increased its spot crude purchases to ensure uninterrupted refinery operations, despite ongoing supply disruptions in the Middle East. The state-owned refiner's reliance on spot market purchases has risen from around 50% to nearly 84%, allowing it to secure prompt deliveries and maintain adequate inventories.
The increase in spot buying is a response to the current geopolitical tensions in the region, which have affected crude supply chains and shipping routes. IOC Director (Finance) Anuj Jain stated that the company's dependence on spot crude purchases has increased substantially following disruptions to supplies from the Middle East.
Despite the higher spot purchases, IOC remains committed to its long-term sourcing strategy, which prioritizes Gulf crude due to lower freight costs and refinery compatibility. Chairman A.S. Sahney emphasized that the Gulf remains India's most economical source of crude and that there is no plan to reduce its long-term dependence on Gulf crude.