Indian Refiners Diversify Amid Middle East Conflict
Indian refiners are scrambling to find alternative crude supplies from Africa and South America after Middle Eastern imports were severely impacted by the ongoing conflict. Bharat Petroleum Corporation Limited (BPCL) has started testing new crude grades from Venezuela and Angola, while Hindustan Petroleum Corporation Limited (HPCL) reported that it received only a fraction of its term contract supplies from the Middle East in the first quarter.
Vetsa Ramakrishna Gupta, finance director at BPCL, confirmed the company's diversification efforts: 'We diversified our crude sourcing outside of the Strait of Hormuz, exploring multiple geographies including two new crude grades from Venezuela and Angola.'
HPCL managing director Vikas Kaushal noted that term contracts were trapped in the Persian Gulf west of the Strait of Hormuz, forcing the company to make decisions based on availability rather than optimization.
In addition to exploring alternative suppliers, India's crude oil imports from Russia have remained at record-high levels in July despite the end of the US waiver. However, some state refiners have suspended Iraqi crude loadings amid escalating tensions and security concerns in the region.