India Diversifies Crude Supplies Amidst Ongoing Middle East Crisis

Indian refiners have continued their buying spree of crude from West Africa, driven by supply disruptions in the Middle East. In one recent transaction, Hindustan Petroleum Corporation Limited (HPCL) acquired 2 million barrels of Nigerian crude oil from Shell for its Visakh refinery.

HPCL bought 1 million barrels each of Nigerian crude grades Forcados and Bonga, with the refinery having a capacity to process 300,000 barrels per day. This purchase is part of HPCL's efforts to secure crude supplies amidst ongoing shipping constraints at the Strait of Hormuz and Bab el-Mandeb.

Other Indian refiners have also made significant purchases in recent weeks. State-run Mangalore Refinery and Petrochemicals Limited (MRPL) bought about 1 million barrels of crude oil from Oman, paying a premium of $3 per barrel to Dated Brent. Meanwhile, Indian Oil Corporation acquired 4 million barrels of West African crude, including Nemba, Saxi Batuque, and Clov grades from Angola, and Congo's Djeno crude.

These purchases are part of India's efforts to diversify its crude supplies, as term deliveries from the Middle East remain uncertain. The country's refiners are seeking alternative sources, with some looking as far afield as Angola in Africa and Venezuela in South America.