Indian refiners charter tankers to import discounted Iraqi crude
Indian oil companies are taking a new approach by hiring tankers to bring in crude oil from Iraq through the Strait of Hormuz.
This is a big change from the past, when they let Gulf suppliers handle all the shipping, mostly to avoid risks in that region.
Now, thanks to purchases of Iraqi crude on a free-on-board basis and some pressure from the US to buy less Russian oil, Indian refiners have more control over logistics and can snag discounts on Iraqi crude.
September flows to India 1.3m bpd
This strategy is already paying off: volumes of oil flowing through the Strait of Hormuz and heading to India averaged about 1.3 million barrels a day in September, the highest since February, before the start of the war.
The move also lines up with global trends as crude flows through Hormuz have bounced back to almost prewar levels.
Plus, India's policy now lets local crews operate on these routes, making things smoother for everyone involved.