Indian Oil Corp Adopts Cautious Approach in Volatile Oil Market

Indian Oil Corporation is not pursuing a fixed quantity deal for Russian oil amid volatile global markets. Russia remains a top crude supplier, but IOC's Russian imports have decreased. The company's import strategy is based on commercial viability without geopolitical influence, with the US also a key supplier.

Indian Oil Corporation (IOC), India's largest oil firm, is steering clear of a fixed quantity deal for Russian oil amid ongoing global market volatility, its chairman A S Sahney announced on Wednesday.

Since the Ukraine conflict began in February 2022, India has ramped up imports of Russian oil, with Russia maintaining its position as the top crude supplier due to enticing discounts. However, these discounts have diminished, posing logistical hurdles and extended shipping durations for oil sourced from Russia.

Sahney noted that Russian oil's share in IOC's import basket has declined to 22-23% from a previous 30%. He stressed that imports must align with the company's commercial viability and its optimization model, which prioritizes the most economical oil sources to produce market-desired fuels.

Sahney dismissed the idea of entering a term import deal for Russian crude, citing no active negotiations and a 'wait and watch' approach due to fluctuating conditions. He also emphasized that imports, including those from the US, rely purely on commercial sense rather than external mandates or geopolitical pressures.

(With inputs from agencies.)