HPCL Faces Tanker Shortages Despite Recovery in Hormuz Oil Flows
The Indian refiner is struggling to secure ships for Gulf cargoes as shipowners hesitate to transit the Strait of Hormuz.
Key takeaways
- HPCL says it is struggling to find tankers for available Gulf crude cargoes.
- The refiner has shifted to spot purchases and direct deliveries to its refineries.
Hindustan Petroleum Corporation is struggling to secure tankers to collect crude in the Gulf, chairman Vikas Kaushal told Bloomberg. Oil flows through the Strait of Hormuz have recovered to nearly pre-war levels, but vessel availability remains tight, according to OilPrice.com.
Kaushal said ships can be difficult to find for scheduled loading dates, and shipowners sometimes withdraw at the last minute. HPCL has shifted from its usual practice of collecting cargoes inside the Gulf to buying on the spot market and arranging direct refinery deliveries.
OilPrice.com reported that ship-to-ship transfers in the Gulf of Oman are keeping supertankers occupied for weeks. The article said vessel constraints have also pushed up demand and daily rates for smaller Aframax and Suezmax tankers.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
