Russian Oil Tanker Diverts to India Amid Global Supply Crunch
In a significant development amid global oil scarcity, a tanker carrying Russian crude has altered its course and is now expected to dock at New Mangalore Port this Saturday. According to data from the ship tracking website Marine Traffic, the vessel Aqua Titan was originally destined for the Chinese port of Rizhao but has turned towards India, as reported by Bloomberg news agency.
Unclear Reasons Behind Course Change
The reasons for this mid-voyage diversion remain unclear, with the Indian government maintaining that it is "unaware of such a development." The Russian ship had loaded its cargo from a Baltic Sea port in late January, based on ship-tracking data. This incident is not isolated; Bloomberg, citing data from Vortexa, notes that at least seven tankers transporting Russian oil have switched their destinations from China to India while en route.
Additional Tanker Headed to India
Separately, the Suezmax tanker Zouzou N is signaling India's Sikka as its next destination, with an estimated arrival date of March 25. Ship-tracking data indicates this tanker is carrying Kazakh CPC Blend crude, according to Kpler. It sailed from Novorossiysk on Russia's Black Sea towards Rizhao before turning around in early March to proceed to India.
Government Directive and Supply Disruptions
The Indian government has instructed oil companies to purchase crude and build up stocks following a massive supply disruption caused by the blockage in the Strait of Hormuz. Special Secretary of Shipping, Rajesh Kumar Sinha, revealed that 11 of the 22 ships stranded on the western side of the Strait of Hormuz are carrying approximately:
- Two lakh tonnes of LNG
- 16.7 lakh tonnes of crude oil
- 3.2 lakh tonnes of LPG
Impact of US Sanctions and Policy Shifts
While India has consistently purchased Russian oil despite US claims to the contrary, refiners like Reliance Industries—which benefited significantly from discounted oil—had reduced dealings with Russian firms such as Rosneft and Lukoil due to American sanctions. However, with the US easing restrictions on high-sea purchases, countries are now buying oil based on their needs, aiming to compensate for shortages caused by the West Asian crude crisis.
Surge in Russian Crude Purchases
India's acquisitions of Russian crude have surged by nearly 50% in March as refiners seek alternative sources to offset supply disruptions in the Persian Gulf. This strategic shift underscores India's proactive approach to securing energy resources amidst escalating tensions, including the Israel-Iran conflict, which has seen military actions such as US strikes on Iranian missile sites near the Strait of Hormuz and Iranian attacks on Tel Aviv.
The geopolitical landscape has been further complicated by Iran confirming the death of national security chief Ali Larijani, with President Pezeshkian offering condolences, and Israel admitting to a strike on an Iranian chief, intensifying fears over oil transit through critical chokepoints like the Strait of Hormuz.
