New Delhi — India’s state-run Hindustan Petroleum has bought 2 million barrels of Angolan oil via a tender, three trade sources said, as reduced availability of costly Middle Eastern oil leads Indian refiners to shift to West African and Asia-Pacific grades.India, which used to rely on Middle Eastern oil for over 45% of its oil imports, has been hit hard by the disruption caused by the U.S.-Israeli war on Iran that has halted shipments via the Strait of Hormuz.
The Oman and Dubai benchmarks eased on Friday, but earlier in the week surged as Middle Eastern crude became the world’s most expensive. Peaks earlier this week exceeded the previous record of $147.50 hit by Brent futures in 2008.
REFINERS SEEK ALTERNATIVES OR CUT OUTPUT
The surge in the benchmarks, used to price millions of barrels of Middle Eastern crude bound for Asia, has increased costs for Asian refiners, leading them to seek alternatives or reduce output.
HPCL has bought a million barrels each of Clov and Cabinda from Exxon at about a $15 premium to dated Brent on a delivered basis for May 1-10 arrival in India’s west coast, the sources said.
Indian companies do not comment on their crude purchases as the deals are confidential.
The refiner has bought oil for its 180,000-barrels-per-day Barmer refinery in the desert state of Rajasthan.
Earlier this week, HPCL bought a million barrels each of Forcados and Agbami from trader Totsa.
Separately, Indian Oil Corp, the country’s biggest refiner, was also seeking to buy crude, mainly from West Africa for loading in the second half of April.
