India’s HPCL, MRPL Buy 5 Million Barrels of U.S. and Mideast Oil
- Crude Procurement Shift: India’s state refiners Hindustan Petroleum Corporation Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) have jointly purchased around 5 million barrels of crude oil from the United States and the Middle East for delivery in early 2026, according to industry sources.
Updated Analysis
The purchases include approximately 2 million barrels each of U.S. West Texas Intermediate (WTI) and Abu Dhabi’s Murban crude by HPCL, while MRPL secured 1 million barrels of Iraq’s Basra Medium crude. The move reflects India’s growing effort to diversify energy sources as new U.S. sanctions on Russian oil companies disrupt traditional supply chains. This strategic shift helps ensure steady feedstock supply while reducing exposure to geopolitical risks in Russia-linked trades.
Key Highlights
- Supply Diversification: First major crude purchase from the U.S. and Mideast since October, signaling India’s pivot away from Russian dependence.
- Sanctions Impact: New U.S. sanctions on Russian entities like Rosneft and Lukoil pushed Indian refiners to seek alternative sources.
- Regional Trade Shift: The deals could influence Asia’s refining balance and product flows in early 2026, potentially affecting diesel and petrol pricing in the region.
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Reuters — India’s HPCL, MRPL Buy 5 Million Barrels of U.S. and Mideast Oil
Strategic & Market Snapshot
This purchase underscores India’s role as a balancing force in the global oil market. By shifting from Russian to U.S. and Middle Eastern suppliers, Indian refiners enhance energy security and broaden supply options. Analysts expect this trend to support market stability and provide a buffer against future sanction-related disruptions in the crude trade ecosystem.
