Crude oil storage tanks at an Indian state-run refinery complex.
New Delhi – India’s state-run oil refiners are currently well-stocked with crude oil, possessing enough reserves to cover approximately two months of operations. This strategic inventory position has led them to delay resuming crude oil purchases from West Asia, even as suppliers are urging a return to contractual purchase volumes. Refiners have yet to commit to new orders, signaling a cautious approach to their procurement strategy.
The significant drop in crude imports from the Middle East during the second quarter of the year underscores this shift. Indian refiners are actively exploring and considering alternative suppliers to diversify their sources and mitigate potential supply chain disruptions. This move reflects a broader trend of strategic inventory management and a proactive stance towards ensuring energy security amidst global geopolitical uncertainties.
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