In a bid to reduce their dependence on oil imports from the Middle East, Indian state-owned refiners are looking more keenly for alternative options, including spot-market purchases, according to a Bloomberg report on Tuesday, quoting sources.
After reeling under the shock of oil and gas shortage due to the Iran war, Indian refiners are planning to reduce the volume they buy from producers in the Middle East under long-term contracts, the report said.
Major public sector refiners Indian Oil (NSE:IOC, BOM:530965), Bharat Petroleum (NSE:BPCL, BOM:500547) and Hindustan Petroleum (NSE:HINDPETRO, BOM:500104) usually purchase around half of their overall crude through long-term deals, with the remaining coming from the spot market, according to the report.
To avoid any disruptions, they are looking to opt for more immediate deals along with entering into supply arrangements with trading houses that source crude from multiple regions such as Guyana, Brazil, and the U.S., Bloomberg wrote.
Indian Oil, Bharat Petroleum and Hindustan Petroleum did not immediately respond to requests for comment from.
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