Indian Refiners Pivot Away from Middle East Amid Supply Chaos

Hindustan Petroleum Corporation Limited is seeking up to 4 million barrels for September and October delivery, while Mangalore Refinery and Petrochemicals Limited targets the October 10-20 window. Notably, the Mangalore-based firm has mandated that suppliers avoid the Red Sea and the Strait of Hormuz, a logistical constraint that reflects growing anxiety over regional hostilities. This cautious approach follows a July precedent where the company first rejected shipments transiting these volatile corridors.

To mitigate the shortfall, India’s largest refiners are aggressively sourcing from West Africa and South America. Indian Oil Corporation recently finalized a deal with Chevron for 4 million barrels of Angolan and Congolese grades. Meanwhile, Mangalore Refinery secured 1 million barrels of Omani crude from Mitsui & Co at a $3 premium to Dated Brent. This shift toward distant markets signals a long-term adjustment to the instability plaguing Middle Eastern supply chains.