Indian Oil Refiners Hire Tankers To Ship Oil Via Hormuz To Cut Costs & Secure Supply Chains
The shift lets refiners control freight costs as Hormuz crude flows reached 1.3 million barrels a day in September, Kpler said.
- On Thursday, Indian Oil Corp., Reliance Industries Ltd., Bharat Petroleum Corp., and HPCL-Mittal Energy Ltd. issued tenders to charter tankers for Persian Gulf crude oil, shifting to Free-on-Board purchasing to cut costs and secure supply chains.
- Refiners previously paid premiums for sellers to handle logistics, but rising costs prompted this strategy change. The Directorate General of Shipping recently revised its advisory to permit Indian seafarers on vessels traversing the Strait of Hormuz with prior consent.
- Iraq's state-owned oil marketer, SOMO, is offering discounts reaching 37% below regional benchmarks for October cargoes. Indian firms awarded initial tanker tenders to Sinokor Group and Dynacom Tankers Management Ltd. to capture these savings.
- The United States threatened 100% tariffs on Indian imports if refiners continued purchasing Russian oil, accelerating a shift away from Russian crude. Three tankers were attacked in the Strait of Hormuz this week, underscoring the route's ongoing risks.
- Flows through the strait have recovered to 98% of pre-war levels, bolstered by the restoration of the East-West Pipeline. September data showed India received 1.3 million barrels of oil daily from the Gulf, the highest volume since February.
14 Articles
14 Articles
India Oil Refiners Change Tactics and Hire Ships to Cross Hormuz
Indian oil refineries now hire their own tankers to collect oil in the Persian Gulf and deliver it through the Strait of Ormuz, Bloomberg reports. Companies conduct tenders themselves; some of them have already won the Sinokor Group and Dynacom Tankers Management.
Indian Refiners Seek Tankers for Hormuz Oil
Indian refining companies are looking for tankers for hire to carry oil out of the Persian Gulf via the Strait of Hormuz, according to a Bloomberg report citing unnamed sources. Two shipping companies have won tenders for Persian Gulf oil, the sources told Bloomberg, while another two submitted bids but their tenders were canceled. Until now, Indian refiners steered clear of using Indian tankers to bring in crude oil from the Persian Gulf becaus…
Indian refiners take charge of Gulf crude shipping, chartering tankers through Hormuz to cut costs
Indian oil refiners are changing how they procure crude from the Persian Gulf, with companies increasingly chartering tankers themselves to transport cargoes through the Strait of Hormuz instead of relying on producers and traders to arrange delivery. Several refiners have reportedly issued tenders and begun discussions with shipowners to secure vessels. Which refiners are changing […] <p>The post Indian refiners take charge of Gulf crude shippi…
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