Indian Refiners Turn to West Africa and Oman Amid Middle East Crude Shortages

Indian state-run refiners are turning to West Africa and Oman for crude oil as Middle East term supplies dwindle due to shipping issues at the Strait of Hormuz and Bab el-Mandeb, trade sources told Reuters.

Hindustan Petroleum Corporation Limited (HPCL) has secured 2 million barrels each of Nigerian Forcados and Bonga grades through a tender with Shell, destined for its Visakh refinery in Andhra Pradesh. This is not the only purchase from Nigeria; HPCL also bought 2 million barrels of Okwuibome and Utapate crudes via a tender with Glencore.

Mangalore Refinery and Petrochemicals Limited (MRPL) acquired about 1 million barrels of Omani crude through a tender at a premium of roughly $3 per barrel to Dated Brent, sold by Mitsui & Co Energy Trading Singapore. Indian Oil Corporation, the country's largest refiner by capacity, has bought 4 million barrels of West African crude from Chevron.