Oil
Ship-to-ship oil transfers expand to India's West Coast
Congestion near the Strait of Hormuz has forced oil producers to push ship-to-ship transfer operations as far as India's West Coast.
Key points
- Ship-to-ship oil transfers reached 82 cargoes in September in India's Gulf of Kutch.
- Operations near Fujairah and Sohar are hitting operational limits due to high traffic.
- Baghdad is offering steep discounts for Basrah grades lacking bypass routes around Hormuz.
What happened
Ship-to-ship oil transfers have expanded to India's West Coast as congestion builds outside the Strait of Hormuz, according to OilPrice.com reporting citing Vortexa data. In September, 82 cargoes totaling approximately 680,000 barrels per day were transferred to larger vessels in the Indian Gulf of Kutch.
Traditional transfer zones off Fujairah in the United Arab Emirates and Sohar in Oman are reaching operational limits. Middle Eastern exporters are utilizing the Indian waters to maintain Asian supplies despite growing tanker journey risks in the Persian Gulf.
Why it matters
According to Vortexa's Varaleka Pant, cited by OilPrice.com, the primary danger involves navigating barrels out of the west of Hormuz to the transfer zones. The rising logistical constraints are directly reflected in regional pricing strategies.
Producers without bypass infrastructure are absorbing deep discounts. Iraq is offering October-loading Basrah Medium at a $34.50 discount and Basrah Heavy at a $37 discount to regional benchmarks. Conversely, the UAE commands a premium for Murban crude exported via pipeline directly to Fujairah outside the Strait of Hormuz.
What comes next
Analysts continue to debate the long-term viability and scale of moving transfer operations eastward into the Indian Ocean. However, current constraints highlight the physical bottlenecks facing global crude flows as exporters navigate restricted maritime routes.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
13.1% of India’s merchandise exports were fuels in 2025Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
