Strait of Hormuz disruptions: Two Indian state-run refiners have cancelled plans to pick up Iraqi crude oil shipments in view of the ongoing disruptions and risks in transiting through the Strait of Hormuz in the Middle East. Renewed attacks and tensions between the US and Iran have once again de facto closed the Strait of Hormuz.Before the conflict escalated, the Strait of Hormuz, located between Iran and Oman, served as the principal transit route for nearly one-fifth of the world’s energy supplies.
Iraq oil shipments cancelled
According to a Reuters report, Indian Oil Corporation (IOC) has called off its planned lifting of Iraqi crude from the Basrah Oil Terminal following heightened security concerns and attacks on vessels transiting the Strait of Hormuz.Also Read | Another oil shock loading for India? How Red Sea route disruptions may hit not only Saudi, but also Russian crude supplyThe state-run refiner had been scheduled to load about 2 million barrels of Iraqi crude onto the Very Large Crude Carrier (VLCC) Lila Jamnagar around July 23.Mangalore Refinery and Petrochemicals Ltd (MRPL), another state-owned refiner, has also cancelled its plans to lift Iraqi crude using the Indian-flagged Aframax tanker Desh Gaurav, the sources said.Iraq has traditionally been one of the biggest crude oil suppliers from the Middle East for India. However, since the start of the US-Iran conflict the shipments have dropped. According to Kpler data, India received an average of 235,000 barrels per day of Iraqi oil. This dropped to zero in April and subsequently saw a gradual albeit small pick up to 33,000 and 67,000 barrels per day in May and June. In July no crude oil has been procured so far.Neither IOC nor MRPL immediately responded to Reuters’ requests for comment.In the wake of renewed fighting in the region, India has advised shipowners, ship managers and recruitment agencies against deploying Indian seafarers on vessels operating through the Strait of Hormuz.The country’s shipping regulator has in the meanwhile directed vessel masters to remain vigilant about the evolving security situation in the Persian Gulf, the Strait of Hormuz and adjoining waters, while ensuring continuous monitoring of navigational warnings.Regional tensions have intensified since the fragile truce between Washington and Tehran collapsed in early July, triggering renewed exchanges of strikes and causing further disruption to shipping through the strategic waterway.
