1 day ago
By Nidhi Verma
NEW DELHI, March 20 (Reuters) - India's state-run Hindustan Petroleum Corporation Limited (HPCL) has purchased 2 million barrels of Angolan oil via a tender, according to three trade sources. This shift comes as the reduced availability of expensive Middle Eastern oil leads Indian refiners to seek alternatives from West African and Asia-Pacific sources.
India, which traditionally relied on Middle Eastern oil for over 45% of its imports, has been significantly impacted by disruptions caused by the U.S.-Israeli conflict with Iran, which has halted shipments through the Strait of Hormuz.
Although Oman and Dubai crude benchmarks eased on Friday, they surged earlier in the week as Middle Eastern crude became the world's most expensive. Prices earlier this week surpassed the previous record of $147.50 per barrel set by Brent futures in 2008.
Refiners Seek Alternatives or Cut Output
The surge in benchmarks, which price millions of barrels of Middle Eastern crude destined for Asia, has increased costs for Asian refiners. As a result, many are seeking alternative supplies or reducing output.
HPCL acquired one million barrels each of Clov and Cabinda crude from ExxonMobil at approximately a $15 premium to dated Brent on a delivered basis, for arrival at India's west coast between May 1-10, the sources said.
Indian companies typically do not comment on crude purchases due to confidentiality.
The purchased oil is intended for HPCL's 180,000-barrels-per-day refinery in Barmer, located in the desert state of Rajasthan.
Earlier this week, HPCL also bought one million barrels each of Forcados and Agbami crude from trader Totsa.
Separately, Indian Oil Corporation, the country's largest refiner, is reportedly seeking to buy crude mainly from West Africa for loading in the second half of April.
(Reporting by Nidhi Verma; Editing by Barbara Lewis)
