Indian refiners diversified crude sources in April and May, increasing oil imports from Venezuela, Brazil, Angola, and Nigeria to compensate for supply disruptions linked to the Iran war.
Cargo scheduling shifts illustrate how geopolitical conflict in the Gulf redirects tanker routes toward Atlantic and African barrels acceptable to refinery configurations.
Venezuelan heavy crude suits certain coastal refineries after payment mechanisms adapted to sanctions-era banking channels, though volumes remain politically sensitive.
Brazilian and Angolan grades offer medium sour blends that replace lost Middle Eastern parcels when Strait transits face insurance surcharges.
Nigerian light sweet crudes help plants producing higher gasoline yields needed before summer driving demand peaks in Indian cities.
Refiners maintain flexibility by testing new assays in pilot units before full throughput changes to avoid catalyst damage.
Diversification costs include longer voyage times and spot premium volatility compared with traditional term contracts from Gulf suppliers.
Government energy planners view African and Latin American ties as strategic hedges rather than permanent displacement of West Asian dependence.
Inventory drawdowns at strategic petroleum reserve sites were not publicly signaled, but commercial tank farms reported higher mixed-origin stocks.
Analysts expect import baskets to keep rotating until ceasefire prospects stabilize shipping through the Strait of Hormuz corridor.
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Sources:
https://www.business-standard.com/economy