Indian Oil secures Red Sea crude cargoes as Middle East conflict reshapes energy flows
NEW DELHI, March 8 – India’s top refiner Indian Oil Corp has booked several crude oil cargoes for loading from the Red Sea port of Yanbu, a company source said on Saturday, as disruptions to Middle East energy exports linked to the U.S.-Israel war with Iran prompt adjustments in regional supply routes.
The shipments are part of a broader shift in oil trade flows as exporters and buyers respond to uncertainty surrounding the movement of energy supplies through traditional Gulf shipping lanes. Saudi Arabia, the world’s largest oil exporter, has been increasing shipments from its Red Sea facilities as an alternative route amid the heightened regional tensions.
The port of Yanbu on Saudi Arabia’s Red Sea coast has become a key outlet for crude exports during the ongoing conflict, allowing shipments to bypass the Persian Gulf and potentially vulnerable maritime chokepoints.A source familiar with the matter said Indian Oil Corp had secured cargoes from Yanbu, although details on volumes and delivery schedules were not disclosed. The move reflects efforts by refiners to diversify loading points and ensure steady supplies at a time when geopolitical risks are affecting the movement of energy commodities across the Middle East.The conflict involving the United States, Israel and Iran has disrupted oil and natural gas exports from the region, according to industry sources, prompting producers and buyers to explore alternative routes and supply arrangements.
At the same time, Russia is examining the possibility of redirecting liquefied natural gas shipments originally intended for Europe toward Asian markets, including India and China.Russia’s Deputy Prime Minister Alexander Novak said on Friday he had discussed with domestic energy companies the prospect of shifting LNG flows to other countries, according to reports by the Interfax news agency and Izvestia newspaper.A government source in New Delhi said Indian companies had previously purchased both sanctioned and non-sanctioned Russian oil after the United States granted India a waiver. The source added that India would also consider buying Russian LNG if supplies were offered.
Despite the disruption to global energy flows, Indian officials said the country’s domestic fuel market remains stable. A separate government source said there were currently no plans to raise retail prices of petrol and diesel.The official added that national fuel inventories were increasing steadily, indicating that refiners and distributors had sufficient stocks to meet demand.India is the world’s fourth-largest buyer of LNG, and authorities have in recent months rationed supplies to some industries, several of which have reported disruptions linked to tighter availability of natural gas.The adjustments by Indian refiners and policymakers underscore the wider impact of the Middle East conflict on global energy trade, with importers seeking supply flexibility while exporters recalibrate routes and destinations for crude oil and natural gas shipments.
