Indian state-run refiner Mangalore Refinery and Petrochemicals Limited (MRPL) has declared force majeure on all planned gasoline export cargoes for March and April as the Middle East war is halting crude supply out of the Gulf, Reuters reported on Wednesday, citing traders.
MRPL operates a refinery with a capacity of 500,000 barrels per day (bpd) in the state of Karnataka in southern India and exports about 40% of all fuel produced at the site.
The refiner has already awarded through tenders up to three cargoes for loading in early March, according to one of Reuters’ sources. MRPL is now in talks with buyers on settling those supplies, the source added.
India, which imports 85% of all its crude consumption, had recently increased its purchases of Middle Eastern oil as it sought to reduce the intake of Russian barrels to appease the Trump Administration in the trade talks.
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However, the war in the Middle East and the stalled traffic via the vital Strait of Hormuz are delaying supplies and prompting India – and basically every single buyer in Asia – to seek alternatives.
Currently, India is estimated to have enough crude for meeting demand for about 25 days. Refiners also have gasoil, gasoline, and liquefied petroleum gas (LPG) stocks for 25 days, a government source told Reuters.
Earlier this year, MRPL was exploring potential purchases of crude from Venezuela after stopping imports of Russian oil.
But India is now considering returning to buying Russian crude amassed in floating storage in Asia as the war in Iran and Tehran’s retaliatory strikes in the region have severely disrupted oil flows from the Middle East.
The state-held refiners of India, the world’s third-largest oil importer, and Indian government officials met over the weekend to discuss emergency supply plans following the major escalation in the Middle East. These plans include a potential return of Indian refiners purchasing Russian oil, sources with knowledge of the discussions told Bloomberg earlier this week.
By Tsvetana Paraskova for Oilprice.com
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