Now Reading: HPCL buys 4 mn barrels, MRPL seeks 2 mn as supply risks mount
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HPCL buys 4 mn barrels, MRPL seeks 2 mn as supply risks mount
India's state-run refiners are scrambling for crude as the Strait of Hormuz remains effectively closed and Russian supplies face disruption. Hindustan Petroleum Corp bought 4 million barrels of West Asian crude for…
The Story in Brief
India's state-run refiners are scrambling for crude as the Strait of Hormuz remains effectively closed and Russian supplies face disruption. Hindustan Petroleum Corp bought 4 million barrels of West Asian crude for early October delivery, traders told Reuters. The refiner purchased 2 million barrels of Murban from BP, 1 million from PetroChina, and 1 million of Oman crude from Trafigura. Mangalore Refinery & Petrochemicals Ltd has issued a tender seeking up to 2 million barrels for October 10-20 delivery, and its tender specifies avoiding the Red Sea and the Strait of Hormuz.
The buying spree is unusually far in advance for Indian refiners, who typically procure spot cargoes only one or two months ahead. Ukrainian attacks on Russian energy infrastructure have cut Russian supplies to India to the lowest since May, while deadlocked US-Iran talks keep the Strait of Hormuz closed. Indian Oil Corp is also seeking October cargoes, and some November volumes have been ordered, sources told Bloomberg.
The Indian Opinion
The rush to buy crude months ahead exposes India's over-reliance on Russian oil, which now accounts for half of state-refiner purchases but is threatened by Ukrainian strikes and potential US sanctions. The narrative that India can safely pivot to the Middle East ignores the fact that Hormuz is closed and alternative grades like US WTI are coming at premiums above $10 a barrel. The real test will be the landed cost of November deliveries: if those premiums push retail fuel prices up, the government's fiscal arithmetic will face a rude shock.
Sources (4): energy.economictimes.indiatimes.com, thehindubusinessline.com, thehindubusinessline.com (2), thehindubusinessline.com (3)
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
