India buys 4m barrels Nigerian crude amid US-Iran crisis

India's state-owned Hindustan Petroleum Corporation Limited (HPCL) has acquired four million barrels of Nigerian crude oil, signaling a growing demand for African oil amid global supply chain disruptions. The move comes as Indian refiners intensify efforts to secure alternative supplies, particularly due to the US-Iran crisis and shipping constraints around the Strait of Hormuz and Bab el-Mandeb.

HPCL purchased two million barrels of Nigerian crude through tenders in two separate transactions. One deal involved one million barrels each of Forcados and Bonga crude grades from Shell, destined for HPCL's Visakh refinery in Andhra Pradesh. Another earlier purchase secured two million barrels of Nigerian crude from commodity trader Glencore, comprising Okwuibome and Utapate crude grades, for HPCL's Rajasthan refinery.

These acquisitions highlight a strategic shift by Indian refiners, who are increasingly looking beyond traditional Middle Eastern suppliers. Several Indian refiners have recently procured crude from Oman and West Africa through tenders. For instance, Mangalore Refinery and Petrochemicals Limited acquired about one million barrels of Omani crude, while Indian Oil Corporation bought four million barrels of West African crude, including Angolan and Congolese grades, from Chevron.

The disruptions in July affected term supplies from the Middle East, prompting Indian refiners to explore further afield, including Angola in Africa and Venezuela in South America. This diversification of crude sources is crucial for maintaining stable refining operations and meeting domestic energy demands in India. Meanwhile, global oil prices saw an increase, with oil trading at $81 per barrel on Thursday.