Indian Oil to trim Middle East term crude purchases for 2027/28

· Oil & Gas · India

Indian Oil Corporation, India's largest state-owned refiner, will slightly reduce the volumes of Middle East crude it buys under annual term deals for the 2027/2028 fiscal year starting next March, an anonymous source with knowledge of the plans told Reuters. The move comes amid uncertainty over supply from the region. The decision by a major Asian buyer signals that refiners are beginning to adjust long-term sourcing plans in response to Middle East risk, a shift that could affect term-deal volumes for Gulf producers.

Why it matters：When a top Asian refiner trims Middle East term volumes, it signals sourcing diversification that could erode Gulf producers' traditional market share in Asia.

Key points

  • Reduction applies to the 2027/28 fiscal year starting next March
  • IOC is India's largest state-owned refiner
  • Source cited uncertainty over Middle East supply

Sources (original reporting)

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