Indian Oil Corp. plans to reduce long-term crude purchases from Middle Eastern producers for next year, shifting toward more flexible spot market deals. The move comes as ongoing attacks in the Persian Gulf and disruptions in the Strait of Hormuz threaten supply routes. India’s largest refiner, which imports over 1.5 million barrels daily, currently covers nearly half of that through term contracts with Gulf producers at official selling prices.
A significant cut would mark a major shift from historical practice. Instead of reducing total Gulf imports, Indian Oil aims to buy more on the spot market, allowing flexibility based on price, freight, and availability. The company has also delayed plans to purchase at least two very large gas carriers, with prices surging to $150 million from $70 million pre-conflict.
Additionally, a planned trading joint venture with Vitol Group has been postponed due to market instability.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing