Key facts
- Indian Oil Corporation will slightly reduce Middle East crude oil purchases for the 2027/2028 fiscal year.
Indian Refiner to Cut Middle East Oil Buys Amid Supply Fears
IN SHORT
Indian Oil Corporation will slightly reduce its Middle East crude oil purchases for the 2027/2028 fiscal year due to supply uncertainty. The refiner is shifting sourcing to South America to offset disruptions and higher costs linked to regional conflicts.
Key Numbers
47%Planned Middle East crude oil share for 2027/2028 fiscal year
$15.4 billionIndia's crude oil import bill in September
46%Year-on-year increase in India's September crude import bill
$90.6 billionIndia's crude oil import bill for April-September
46.3%Year-on-year increase in India's April-September crude import bill
Who's Involved
Indian Oil Corporation
India’s largest state-owned refiner reducing Middle East term oil purchases
anonymous source
with knowledge of the plans told Reuters
↳ Why This Matters
India's decision to reduce Middle East crude purchases impacts global oil flows and pricing, as the country is a major importer. The shift to alternative sources and producer discounts highlights the market's response to geopolitical risks affecting supply and freight costs.