India Turns to West Africa as Hormuz Bottleneck Cuts Off Middle Eastern Crude

India's refiners are scrambling to replace lost crude oil supplies from the Middle East due to shipping constraints at the Strait of Hormuz and Bab el-Mandeb. Several Indian companies have turned to West Africa for alternative supplies, with state-run Indian Oil Corporation buying 4 million barrels of crude from Angola and Congo.

Hindustan Petroleum Corporation Limited has acquired 2 million barrels of Nigerian crude via a tender, while Mangalore Refinery and Petrochemicals Limited bought about 1 million barrels of crude oil from Oman at a premium of some $3 per barrel to Dated Brent. This trend is expected to continue as Indian refiners seek to offset the loss of supply from the Middle East.

The recent purchase by HPCL marks another effort by Indian companies to find alternative sources for their crude supplies, following significant imports of Russian oil in recent months. July imports of Russian crude hit a new all-time high and accounted for more than half of total Indian crude oil imports.