Middle East Conflict Disrupts Oil Shipments to India

Oil shipments to India have been disrupted due to renewed fighting in the Middle East. At least two major refiners, Bharat Petroleum Corp. and Indian Oil Corp., have had their delivery schedules changed after planned deliveries didn't arrive on time.

The disruptions were caused by a resurgence of conflict between Iran and the US, which continues to affect oil shipments through the Strait of Hormuz, a critical waterway that connects the Persian Gulf to global markets.

As a result, local refiners have been forced to seek alternative crude supplies at short notice, leading to a flurry of purchase tenders and cargo solicitations. This has contributed to increased costs for oil imports.

The situation is further complicated by the ongoing Russian-Ukraine war, which has put pressure on oil flows from Russia, another key supplier to India. The price of Urals crude, which ships from Russia's western ports, is now about $2 per barrel more expensive than before.