Indian state refiners, including Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum (HPCL), are looking to source crude oil from Middle Eastern suppliers due to a shortfall of 8-10 million barrels of Russian oil for January. They anticipate ongoing supply challenges from Russia, linked to rising domestic demand and OPEC commitments. To address this, the refiners may utilize their inventories for processing needs in March or increase imports from the Middle East. Following EU sanctions, India has become the largest importer of Russian crude, which constitutes over a third of its energy imports. However, recent declines in Russian spot exports, attributed to operational resumption and adverse weather, have prompted the refiners to consider alternatives, though they remain cautious to avoid economic impacts. They are exploring options like term contracts or spot tenders for high-sulphur oil.

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