Indian refiners are exploring new crude oil suppliers as Red Sea tensions continue to disrupt global shipping.
Companies are testing cargoes from Venezuela and Angola to ensure uninterrupted supplies and reduce dependence on traditional routes.
Key Highlights
- Indian refiners are sourcing crude from Venezuela and Angola.
- Move comes amid continued Houthi attacks in the Red Sea.
- The Bab el-Mandab Strait handles nearly 12% of global oil shipments.
- Alternative shipping routes are increasing freight costs and delivery times.
- Brent crude has crossed $100 per barrel amid supply concerns.
- Refiners aim to secure stable supplies despite geopolitical uncertainty.
Indian oil refiners are expanding their crude sourcing strategy by testing supplies from Venezuela and Angola as ongoing security concerns in the Red Sea continue to disrupt global energy trade.
The move comes after repeated attacks by Yemen’s Houthi rebels on commercial vessels passing through the Bab el-Mandab Strait, one of the world’s most important shipping chokepoints. The strait connects the Red Sea with the Gulf of Aden and carries nearly 12% of global oil shipments.
With many shipping companies avoiding the Red Sea route, crude oil cargoes are being diverted around the Cape of Good Hope, significantly increasing travel time and transportation costs. The disruption has pushed Brent crude prices above $100 per barrel, raising concerns over global energy supplies.
To reduce dependence on traditional suppliers and safeguard fuel availability, Indian state-run refiners are evaluating new crude grades from Venezuela and Angola. According to Bharat Petroleum Corporation Ltd. (BPCL), the company has diversified its sourcing portfolio to maintain uninterrupted supplies despite the geopolitical tensions.
The strategy is aimed at improving energy security while giving refiners greater flexibility in managing supply disruptions caused by conflicts in key maritime trade routes.
Industry experts say India’s diversified crude procurement approach helps reduce risks associated with geopolitical crises and ensures that domestic fuel supplies remain stable even during periods of global uncertainty.
With crude prices remaining volatile, refiners are expected to continue exploring new sourcing options while closely monitoring developments in the Red Sea and West Asia.
