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Indian Refiner Shifts to Spot Purchases as Middle East Tensions Disrupt Supply Chains

Bharat Petroleum Corp. Ltd. has pivoted toward spot crude market purchases as geopolitical tensions in the Middle East strain traditional long-term supply agreements. The Indian state refiner's move reflects broader challenges facing refineries globally. Regional conflict restricts the flow of barrels through key maritime routes. Domestic fuel prices have climbed sharply, with state refiners implementing multiple increases within days as crude costs surge. The supply squeeze has driven global buyers to seek alternative sources, including increased purchases from U.S. reserves and emerging suppliers. India's refineries are absorbing significant economic losses amid the disruption, though industry analysts expect the sector to manage near-term challenges through demand moderation and access to diversified crude sources. The shift underscores how regional instability continues reshaping international energy procurement strategies.