Indian Oil Buys Record Spot Market Crude on Mideast Supply Hit

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The shift shows how geopolitical turmoil is forcing even the region’s biggest buyers to abandon long-established procurement strategies.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Indian Oil Corp. bought a record share of its crude oil from the spot market in the April-June quarter after the US-Iran conflict upended supplies from the Middle East. The shift shows how geopolitical turmoil is forcing even the region’s biggest buyers to abandon long-established procurement strategies.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe New Delhi-based refiner sourced as much as 84% of its crude through spot purchases, Finance Director Anuj Jain said Saturday during an analyst call. This also lifted Indian Oil’s reliance on Russian crude to as high as 54% of its imports during the quarter. Usually, the company secures about half its requirements under long-term contracts with mainly Gulf producers. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againIndian Oil imported about 1.4 million barrels of crude a day in the quarter, accounting for roughly 27% of the country’s overseas oil purchases, according to Kpler data. Despite the abrupt change in its supply mix, the company expects to return to its traditional procurement once shipping through regional choke-points normalizes. That’s because Middle Eastern producers remain the closest and most reliable long-term suppliers, Chairman Arvinder Singh Sahney said during a media briefing late Friday.The refiner’s crude demand is set to rise further after expansions at its Panipat, Barauni and Gujarat refineries add 347,000 barrels a day of processing capacity by December, Jain said.Besides expanding refining capacity, Indian Oil is accelerating investments in petrochemicals and renewable energy as it prepares for slower long-term growth in transport fuel demand. The company is also considering joining the government’s plan to more than double India’s strategic oil reserves to 87 million barrels, Jain said.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.