Indian Oil Corp boosts spot oil purchases amid Middle East disruptions

Indian Oil Corp, India’s largest refiner, has significantly increased its spot oil purchases due to ongoing disruptions in the Middle East. The company has been sourcing more crude from West Africa and Latin America as tensions around the Strait of Hormuz impact supply chains. This move highlights the heightened demand and potential supply constraints that could influence global oil markets. The company’s spot oil volume has risen from 50% to almost 84%, indicating a strategic shift towards short-term purchasing to ensure adequate refinery feedstock. Key Takeaways Indian Oil Corp’s increased spot oil purchases appear consistent with rising demand amid Middle East supply disruptions. The company’s shift towards West African and Latin American crude suggests adaptability to geopolitical tensions. Pricing in oil markets suggests that these developments may support scenarios where oil prices rise further. What to Watch Market participants will closely monitor the ongoing geopolitical tensions in the Middle East, as further disruptions could impact global oil supply and pricing. Any developments regarding OPEC’s production decisions or changes in U.S. sanctions policy could also influen...