India Steps Up Tanker Bookings for Middle East Oil
Indian oil refiners have sharply increased the chartering of crude oil tankers from the Middle East as they brace for potential disruptions in Russian oil supplies. With new U.S. sanctions on major Russian producers set to take effect on November 21, refiners are securing additional vessels for late November and December loading from Saudi Arabia, Iraq, Kuwait and the UAE.
Shift Away From Russian Cargoes
India has been one of the largest buyers of discounted Russian crude since 2022, but the upcoming sanctions targeting companies such as Rosneft and Lukoil have raised compliance and insurance concerns. Several refiners have already indicated they will adhere to sanctions protocols, prompting a rapid shift toward Middle Eastern suppliers to ensure uninterrupted refinery operations.
Impact on Shipping and Supply Chains
The surge in tanker bookings is expected to tighten regional shipping availability and increase freight rates. Analysts say Indian refiners are taking precautionary steps to diversify supply sources and stabilise inventories ahead of the sanctions deadline. The move highlights India’s continued balancing act between securing affordable crude and managing geopolitical risk.
