Indian Oil shifts to spot crude buying as Middle East supply shocks intensify

Disruptions in Middle Eastern oil routes after the US-Iran war prompted Indian Oil Corporation to overhaul its sourcing strategy, lifting spot market purchases from 50% to roughly 84% of its total crude intake, finance director Anuj Jain said. The state-run refiner is supplementing the shortfall with additional Russian cargoes and greater imports from West Africa and Latin America. IOC, together with its subsidiary Chennai Petroleum Corporation, handles about a third of India's refining capacity and aims to process 1.7 million barrels per day by 2027-28.

The company posted a net loss for the April-June quarter, blamed on rising crude prices, yet achieved its highest ever quarterly crude throughput and improved refinery utilisation to over 109%. Domestic fuel sales and market share also rose, while the petrochemicals and gas divisions saw better profitability.