War Disrupts Supplies, Indian Refiners Rush to Secure Crude Months Ahead

Indian state-owned oil refiners are significantly accelerating their spot crude oil purchases due to rising supply uncertainties caused by Ukrainian attacks on Russian energy infrastructure and a stalemate in the Strait of Hormuz.

According to sources, refiners including Indian Oil Corporation and Hindustan Petroleum Corporation have already secured some crude supplies for October and are now moving to purchase cargoes arriving as late as November. Typically, these companies only procure spot crude one to two months in advance.

As the world's third-largest oil importer, India's aggressive buying spree highlights growing concerns over Russian crude supplies. Following consecutive Ukrainian strikes on Russian energy and port infrastructure, Russian crude shipments to India have fallen to their lowest level since May.

In recent years, Russia has become India's largest crude supplier, accounting for about half of the purchases made by Indian state-owned refiners. Meanwhile, with stalled US-Iran talks and uncertainty over the full reopening of the Strait of Hormuz, Middle Eastern oil exports continue to run well below normal levels.

Both Washington and Tehran have hardened their stances, dimming hopes for a breakthrough. The situation was further clouded by Iran's attack on two UAE oil tankers on Friday. Hindustan Petroleum Corporation has purchased approximately 4 million barrels of Middle Eastern crude for October delivery that does not transit the Strait of Hormuz, while Mangalore Refinery and Petrochemicals Ltd has also booked West African crude for delivery in the same month.

India's largest refiner, Indian Oil Corporation, is also procuring crude for October. Sources say that after securing part of their October cargoes, Indian oil companies are preparing to issue more tenders in the coming weeks, with some November-delivery crude already ordered. Spokespersons for Indian Oil Corporation, Hindustan Petroleum Corporation, Mangalore Refinery and Petrochemicals Ltd, and Bharat Petroleum Corporation have not yet responded to requests for comment.