India's IOC to Cut Middle East Crude Purchases Amid Regional Uncertainty

India's largest state-owned refiner, Indian Oil Corporation (IOC), is adjusting its crude oil procurement strategy, planning to slightly reduce its reliance on Middle East supplies for the upcoming fiscal year. This shift comes amid ongoing supply uncertainties and increased costs in the region. Refiners have traditionally favored Middle Eastern crude due to its suitability for Indian refinery processes and shorter shipping times. However, recent geopolitical tensions and attacks on vessels in the Strait of Hormuz have disrupted supply chains and raised operational costs. The war in Iran and the resulting instability have prompted India to diversify its sourcing, with refiners turning to the spot market and increasing imports from South American countries like Brazil, Venezuela, and Ecuador.