Middle East Oil Producers Shift Transfer Hubs to India’s West Coast

In September alone, 82 cargoes totaling 680,000 barrels per day were moved between vessels in the Indian waters of the Gulf of Kutch. According to Vortexa data, this migration reflects the physical limits of shuttle-shipping operations near Fujairah and Sohar. As these primary zones reach saturation, logistical pressure forces producers to seek transfer points further along the maritime route to Asia, complicating supply chain dynamics.

While ship-to-ship transfers themselves remain a standard, low-risk procedure, the true vulnerability lies in navigating the Strait of Hormuz. Iraq currently faces significant financial strain, offering deep discounts on Basrah Medium and Heavy grades because it lacks an export bypass. Conversely, the UAE maintains a pricing premium on Murban crude, which utilizes a pipeline to reach Fujairah directly, bypassing the chokepoint entirely.