India’s state-owned Hindustan Petroleum Corporation Limited (HPCL) has purchased 2 million barrels of Angolan crude for early May delivery, according to trade sources, as Indian refiners increasingly turn to alternative suppliers amid rising Middle Eastern oil prices.
The cargo, comprising one million barrels each of Clov and Cabinda grades, was secured through a tender from ExxonMobil at a premium of around $15 per barrel above dated Brent, on a delivered basis to India’s west coast between May 1 and 10.
The shift comes as disruptions linked to the ongoing U.S.-Israeli conflict involving Iran have impacted shipments through the Strait of Hormuz, a key artery for global oil flows. The situation has reduced the availability of Middle Eastern crude, traditionally accounting for more than 45 percent of India’s oil imports.
Earlier in the week, Middle Eastern crude benchmarks such as Oman and Dubai surged sharply, briefly becoming the most expensive globally. Prices exceeded previous highs, surpassing the $147.50 per barrel record set by Brent crude futures in 2008, before easing later in the week.
The spike in prices has increased costs for Asian refiners, prompting many to either diversify sourcing or scale back output. HPCL’s latest purchase reflects this broader trend.
The company is expected to process the crude at its 180,000 barrels-per-day refinery in Barmer, located in Rajasthan.
Earlier, HPCL had also acquired one million barrels each of Nigeria’s Forcados and Agbami crude from trader TotalEnergies Trading (Totsa).
Separately, Indian Oil Corporation (IOC) is also seeking to secure additional cargoes, primarily from West Africa, for loading in the second half of April.
Indian state refiners typically do not comment on crude procurement deals, citing commercial confidentiality. (Source: Rueters)
