HPCL & MRPL Acquire 5M Barrels US Mideast Oil

Hindustan​‍​‌‍​‍‌​‍​‌‍​‍‌ Petroleum Corporation Ltd (HPCL) purchased 2 million barrels each of U.S. West Texas Intermediate (WTI) crude and Abu Dhabi’s Murban crude, both scheduled for January delivery.

On the other hand, Mangalore Refinery and Petrochemicals Ltd (MRPL) bought 1 million barrels of Basra Medium crude, which is expected to arrive between January 1 and 7. The seller's identities and pricing details have not been revealed.

The two largest Indian state-owned refiners have bought 5 million barrels of crude oil in the spot market, according to local trade sources. This is part of their ongoing strategic pivot away from Russian supply.

These purchases are a response to the political pressures resulting from the U.S. sanctions on Russia's two major oil companies, Rosneft and Lukoil. These sanctions, which were imposed by the administration of former U.S. President Donald Trump, were intended to force Putin to end the war in Ukraine by putting pressure on him through these two companies.

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Indian refiners have been steadily cutting back on Russian oil after the sanctions have been imposed and risks related to them have been voiced. MRPL has stopped buying Russian oil as it was uncertain and was concerned about regulations. At the same time, HPCL in recent months has reduced the volume of its imports from Russian crude and decided to not make any further purchases there.

The purchases serve as a testament of India's bigger plan to shore up its energy security through source diversification strategies amid the ongoing geopolitical upheavals in the world. Indian refiners will continue to buy oil from the U.S., the Middle East, and Iraq to keep their supply chain stable and mitigate the risks associated with pricing and ​‍​‌‍​‍‌​‍​‌‍​‍‌operations.