- PBF Energy Inc. is benefiting from reliable supply in the Americas as geopolitical conflicts reshape crude and product markets, involving Eastern Europe and the Middle East.
- Indian refiners turn to Americas for crude.
India Diversifies Crude Sources as Pipeline Disruptions Raise Import Costs
What happened
India is diversifying its crude oil sources, increasing reliance on Latin America, the US, Russia, and West Africa to reduce dependence on Middle Eastern supplies. This shift occurs amid the closure of Saudi Arabia's East-West pipeline. Experts note that this pipeline closure is constraining routing options and raising the cost of crude imports for Indian refiners.
From rediff.com
Why it matters
The closure of the Saudi Arabia East-West pipeline is increasing the landed cost of crude for India due to higher prices, freight, and insurance. Increased crude costs could lead to a larger oil import bill, putting pressure on the rupee and increasing inflationary risks for India. Kpler is monitoring these pipeline impacts.
Indian refiners are turning to the Americas for crude as geopolitical conflicts reshape crude and product markets involving the Middle East and Eastern Europe.
From rediff.com
Who's involved
- Latin AmericaRegion of the Americas supplying diversifying crude oil sources to India.
- KplerMaritime intelligence firm monitoring pipeline impacts and vessel movements.
- Saudi ArabiaCountry whose East-West pipeline is shutting down, constraining crude exports.
- Middle EastGeopolitical region where major oil transit routes are facing disruptions.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Middle EastSpeculative
The region might face increased market risk and higher costs due to reduced oil supply routes.
- Latin AmericaSpeculative
The region could see increased crude demand from India as supply routes diversify.
Keep exploring
The entities involved
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Latin America
region of the Americas where Romance languages are primarily spoken
- Kpler
Related events
- Indian agrochemical exporters are seeking markets in Europe, North America, and Latin America while contending with the added uncertainties caused by the ongoing crisis in West Asia and the wider Middle East.
- Kpler and MarineTraffic are tracking shipping volatility near Hormuz, while the Red Sea route supplies 50% of India's energy.