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<\/p>\n(Bloomberg) — Two Indian state-run refiners have suspended crude oil loadings from Iraq as mounting security risks in the Strait of Hormuz make it increasingly difficult to ensure safety of vessels, according to people familiar with the matter.\u00a0<\/p>\n
Indian Oil Corp. abandoned plans to load the supertanker Lila Jamnagar, which can hold as much as 2 million barrels of oil, the people said, asking not to be identified because the matter is private. The refiner concluded it was too risky for a fully laden tanker to attempt a Hormuz crossing, after several freighters were struck by projectiles in recent days.<\/p>\n
Mangalore Refinery & Petrochemicals Ltd., controlled by state-owned Oil and Natural Gas Corp., has also suspended lifting from Iraq because of the deteriorating security situation, the people said. Indian Oil, Mangalore Refinery and India\u2019s oil ministry didn\u2019t respond to requests for comment.<\/p>\n
India\u2019s halt further highlights the sharp pullback in shipping traffic through the Strait of Hormuz after Iran targeted multiple oil tankers in an attempt to assert control over the waterway. Vessels that had their transponders off to avoid detection have also come under fire, leaving shipowners with the big question about whether they\u2019re still willing to transit dark.<\/p>\n
<\/p>\n
\u201cThe situation in the Strait of Hormuz and the escalating conflict in the region\u201d have increased transit risks and insurance costs, Iraq\u2019s Oil Ministry spokesman Salim Al-Rikabi said. \u201cAs a result, some companies have canceled scheduled loading operations,\u201d he said, wihtout elaborating further. \u00a0<\/p>\n
Indian state refiners typically purchase Iraqi crude under long-term contracts that requires the buyer to arrange shipping. Reuters first reported India\u2019s loading suspensions.<\/p>\n
India\u2019s shipping ministry has directed shipowners, managers and recruitment agencies to refrain from deploying Indian seafarers on vessels transiting Hormuz until further notice following the rise in attacks on commercial vessels.<\/p>\n
(Updates with Iraq oil ministry comments in the fifth paragraph.)<\/p>\n
\u00a92026 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Two Indian state-run refiners have suspended crude oil loadings from Iraq as mounting security risks 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