IOC Boosts Spot Oil Purchases Amid Middle East Crisis

Indian Oil Corp (IOC) has increased its spot oil purchases to compensate for losses due to Middle East supply disruptions. According to Anuj Jain, IOC's head of finance, the company's spot volume jumped from 50% to almost 84%. This change is a direct result of the U.S.-Iran war that began in late February.

The Strait of Hormuz and Red Sea have been affected by the conflict, causing Indian refiners to rely heavily on spot purchases. In this case, IOC has turned to Russian oil for processing at its refineries. Additionally, the company has stepped up purchases from West African and Latin American producers to make up for the supply disruption.

IOC controls about a third of India's 5.2 million barrels per day refining capacity, alongside its subsidiary Chennai Petroleum Corp. The company aims to process 1.7 million bpd oil at its directly owned refineries in 2027/28, as it hopes to expand the capacity of some units by the end of this year.