Indian State Refiners Secure 5 Million Barrels of Crude from Spot Markets Amid Russian Supply Pause
In a strategic move to diversify energy sources, two Indian state-run refiners have purchased a total of 5 million barrels of crude oil from spot markets through recent tenders, according to trade sources. Hindustan Petroleum Corporation Ltd. (HPCL) has acquired 2 million barrels each of U.S. West Texas Intermediate (WTI) and Abu Dhabi’s Murban crude for January arrival, while Mangalore Refinery and Petrochemicals Ltd. (MRPL) has procured 1 million barrels of Basra Medium crude for delivery between January 1 and 7.
The refiners’ latest purchases come as India continues to scout for alternatives to Russian crude following U.S. sanctions on Rosneft and Lukoil, Russia’s top oil companies. The sanctions, aimed at pressuring Moscow over its ongoing war in Ukraine, have complicated transactions and raised risks for Indian buyers traditionally dependent on discounted Russian oil.
MRPL and HPCL have both reduced their Russian oil imports in recent months, with MRPL temporarily halting purchases altogether due to sanctions-related challenges. HPCL, too, has paused its Russian crude intake, turning instead to Middle Eastern and U.S. suppliers to secure steady energy flows amid geopolitical uncertainty.
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