Indian refiners scout for oil deals ahead of EU ban on Russian crude:Report

Indian state refiners plan to lock-in more of their crude supplies in term deals, worried that tighter Western sanctions on Russia, including from the EU, could curb future supplies in already tight markets, sources at state refiners said.

Indian Oil Corp, the country’s top refiner, and Bharat Petroleum Corp are seeking term deals with countries, including the United States, industry sources said.

“We are preparing for a back up plan. When the world is uncertain because of Russia-Ukraine conflict we need to have all options open,” said an official at one state refiner.

The move towards term deals marks a shift in refiners’ purchasing strategy, which had been geared towards maximising spot purchases in past years when supplies were abundant.

“Due to the Russian-Ukraine conflict, we expect a possibility of tight oil markets and a change in flows with most Middle Eastern crude going to meet need of European markets so we need to diversify our oil sources,” said a source at another state refiner.