Indian Refiners Seek 6 Million Barrels of Spot Crude

Indian state-owned oil refineries are actively seeking spot crude supply to offset the constraints imposed by the ongoing Middle East crisis and the Strait of Hormuz blockade. Mangalore Refinery and Petrochemicals Limited (MRPL) and Hindustan Petroleum Corporation Limited (HPCL) together aim to purchase a total of 6 million barrels of crude oil through spot tenders, with HPCL seeking up to 4 million barrels for September and October deliveries.

MRPL is looking to acquire spot crude for delivery between October 10 and 20, requesting potential suppliers to avoid carriers navigating through the Strait of Hormuz and the Red Sea. MRPL initiated this approach in July when hostilities in the Middle East resurfaced, prompting them to become the first Indian refiner to request suppliers to circumvent the aforementioned chokepoints.

Since then, Indian refiners have been aggressively buying crude from West Africa, taking advantage of the supply disruptions in the Middle East. Recently, MRPL secured approximately 1 million barrels of crude from Oman at a $3 premium above Dated Brent, offered by Mitsui & Co Energy Trading Singapore. Furthermore, India's largest refiner, the Indian Oil Corporation, has acquired 4 million barrels of West African crude, including Nemba, Saxi Batuque, and Clov grades from Angola, as well as Congo's Djeno crude, from Chevron.