The government does not see any major impact on oil supplies to the country owing to the ongoing conflict in West Asia, said Union minister for petroleum and natural gas Hardeep Singh Puri. However, any further escalation of the situation could hit energy availability, he added.
Shippers have been avoiding the Red Sea route for some time now owing to Houthi attack fears. Owing to heightened tensions, there have been fresh attacks reported on ships in the Red Sea, leading to further slump in commercial shipping traffic. Shipping rates in the region have also seen a slight uptick.
Indian refiners have been seen taking the Cape of Good Hope route for oil product exports ever since Red Sea issues cropped up.
Many tankers are already opting for the longer route via the Cape of Good Hope for the delivery, resulting in higher shipping costs. Africa’s Cape of Good Hope shipping route can extend voyages for up to 14 days or beyond, as per industry people and analysts.
