Key facts
- Indian refiners MRPL and HPCL are seeking a combined 6 million barrels of spot crude.
- HPCL needs crude for September and October delivery, while MRPL requires it in early October.
- MRPL's tender specifies avoiding the Strait of Hormuz and Red Sea routes.
- The search for spot crude is driven by disruptions to term supplies from the Middle East.
- Indian refiners have increased purchases of West African crude due to supply uncertainty.
Indian state-controlled oil refiners are actively seeking approximately 6 million barrels of crude oil on the spot market, as ongoing tensions in the Middle East disrupt regular term deliveries. Mangalore Refinery and Petrochemicals Limited (MRPL) and Hindustan Petroleum Corporation Limited (HPCL) have issued tenders for crude oil, with HPCL looking to secure up to 4 million barrels for delivery in September and October. MRPL is seeking spot crude for delivery between October 10-20 and has specifically requested that suppliers avoid cargoes transiting the Strait of Hormuz and the Red Sea, routes that have become increasingly risky.
This move by Indian refiners highlights the impact of the Middle East crisis on global energy supply chains. In recent weeks, Indian state-run refiners have increased their purchases of crude from West Africa to ensure supply and mitigate delivery uncertainties. Last week, MRPL acquired about 1 million barrels of Omani crude at a premium, and Indian Oil Corporation, the country's largest refiner, purchased 4 million barrels of West African grades from Chevron. Refiners are extending their search for crude to regions as far as Angola and Venezuela, indicating a significant shift in sourcing strategies due to the instability in traditional Middle Eastern supply routes.