Middle East Conflict Disrupts Oil Shipments to India, Forces Refiners to Seek Alternative Supplies

Oil shipments to India have been disrupted due to fighting in the Middle East. At least two refiners, Bharat Petroleum Corp. and Indian Oil Corp., had planned deliveries delayed or missed in August.

The delays were caused by a resurgence of fighting between Iran and the US over the Strait of Hormuz, a critical waterway that links the Persian Gulf to global markets. India typically relies on cargoes sent through this chokepoint.

BPCL had four Persian Gulf cargoes that didn't arrive on schedule in August, according to people familiar with the matter. The refiners were forced to seek alternative crude supplies at short notice, which contributed to a recent flurry of purchase tenders and cargo solicitations.

The disruptions have added to the challenges faced by Indian refineries, which are already struggling due to the war between Russia and Ukraine. Russian oil flows to India have come under pressure due to Ukrainian attacks, making Moscow's barrels more expensive.