India MRPL Shuts Crude Units Due to Middle East Oil Shortage

The state-run refiner Mangalore Refinery and Petrochemicals Limited has partially suspended operations at its facility in India following a significant shortage of crude oil supplies. Sources indicate that the company shut down a 100,000-barrel-per-day crude unit and several secondary units, including a hydrocracker, at its Karnataka complex on Wednesday evening. The disruption comes as refiners across Asia, including hubs in Singapore, struggle to secure immediate replacement cargoes due to geopolitical instability. Threats from Iran regarding maritime traffic through the Strait of Hormuz have hampered global oil flows, impacting approximately one-fifth of the world's oil consumption and influencing the market for Brent Crude Oil. In response to the tightening supply, some refiners in China have already begun reducing their processing volumes. The situation is particularly challenging for the Indian refiner, which transitioned away from purchasing oil from Russia late last year and now relies heavily on Middle Eastern imports. Consequently, the company has halted refined fuel exports as it manages the ongoing supply constraints.