Indian refiners shift strategy: begin renting ships themselves to transport crude oil through the Strait of Hormuz

(1) According to foreign media reports, Indian refiners are now chartering tankers to transit the Strait of Hormuz and load crude oil from within the Persian Gulf, marking a shift in their strategy. (2) Since the early stages of the US-Iran conflict, Indian refiners have avoided sending their own chartered tankers through the Strait of Hormuz due to the risk of attacks, instead relying on Gulf oil-producing countries and international traders to bear the risks, and have paid a high premium for this through cost-plus-freight arrangements. (3) However, in recent weeks, Indian Oil Corporation, Reliance Industries, Indian Oil Corporation, and HPCL-Mittal Energy have purchased Iraqi crude oil via tenders, with Indian Oil Corporation acquiring 2 million barrels of Iraqi crude for delivery in October. (4) Such transactions require the buyer to arrange vessels for loading the cargo and handling its logistics to the destination.