India looks to boost oil imports from alternative sources amid attacks on Red Sea shipping

• India is seeking to boost oil imports from the Persian Gulf and Central Asia, Bloomberg reported.
• That's because attacks in the Red Sea have delayed oil shipments from Europe.
• India's prime minister Modi discussed the situation with Saudi Arabia's crown prince.

The world's third largest importer of crude oil wants to boost sourcing from places amid growing threats in the Red Sea.

As Houthi rebel attacks on ships passing through the Red Sea have threatened to disrupt global energy flows, India is beginning to seek oil supplies from the Middle East and other nations.

In particular, the Indian government is advising merchants to diversify their oil purchases by sourcing supplies from the Persian Gulf and Central Asia, sources told Bloomberg.

That's because oil tankers from the Mediterranean and North Sea that usually sail through the Red Sea might have to reroute, taking longer shipping times.

And India can't afford to wait longer for its oil — the country needs to keep up with strong domestic demand. Although Indian refineries haven't seen an immediate impact on the amount of oil they process, some oil companies like Bharat Petroleum have already arranged for alternative oil supplies, a source told Bloomberg.

Refiners have also been worried about thinning margins as the flare-ups in the Red Sea have inflated insurance costs for cargoes that could come under attack.

One cargo vessel, the MV Chem Pluto, was recently struck by an alleged drone near India's west coast. Days later, Indian Prime Minister Narendra Modi discussed the regional situation, including Red Sea attacks, with Saudi Crown Prince Mohammed bin Salman.

In a post on X, Modi said, "We exchanged views on the West Asia situation and shared concerns regarding terrorism, violence and the loss of civilian lives."

The Iran-backed Yemeni Houthi rebels began targeting ships after Hamas attacked Israel on October 7. In the past few weeks, a Norwegian-flagged oil tanker was attacked, as well as a US commercial ship.

The intensifying turmoil has got some shipping companies like Maersk Tankers allowing its fleet to veer away from the Red Sea, taking routes that could add weeks to their voyages. Other shipping giants like MSC, Hapag-Lloyd, and BP have also rerouted vessels away from places like the Suez Canal, which connects the Mediterranean Sea to the Red Sea.