Indian Oil to trim West Asian oil imports under annual deals amid Iran war

IOC, the country's top refiner, had planned to source about 47% of its crude imports from West Asian producers under annual deals on a free-on-board (FOB) basis in the financial year ending March 2027. The state-run refiner will "slightly" reduce the volume of crude it buys under annual deals with Gulf producers next year, the source said, declining to be identified because of the sensitivity of the matter.

Disruptions to oil ‌supplies from the region, as the Iran war enters its eighth month, have forced Asian refiners to suspend purchases under some annual deals. Attacks on vessels transiting the Strait of Hormuz have also constrained shipping availability and driven freight rates to near-record highs. Refiners have instead turned to spot purchases, with some producers offering crude on a delivered basis and absorbing part of the elevated freight costs to ​attract buyers.

However, in recent months, some Indian refiners, including IOC, bought Iraqi oil sold at a ‌discount to the Dubai benchmark on a free on board basis, the source said. Indian refiners initially increased purchases of Russian oil to compensate for reduced ​West Asian ‌supplies. However, Russian oil imports could ease in the coming months as more supplies become ‌available through the Strait of Hormuz and West Asian producers offer discounts on crude and freight to retain market share.

Indian Oil in July issued a ‌tender ​to buy a stake ​in at least two very large gas carriers. The refiner has, however, paused the plan to award the tender as costs have almost ‌doubled to about $150 ​million for a 10-year-old vessel since it floated the tender. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Don't miss the most important news and views of the day. Get them on our Telegram channel First Published: Oct 21 2026 | 2:27 PM IST