India broadens crude sources amid shipping disruptions

India expanded its crude oil supply network to 41 countries from 27 as geopolitical tensions disrupted shipping routes around the Strait of Hormuz and the Red Sea, Petroleum Minister Hardeep Singh Puri said on 16 Oct 2026. He said the country was importing and consuming more than 5 million barrels of oil a day while exporting about 1 million barrels of refined petroleum products. The minister said supply diversification and rising refining capacity had helped keep crude availability stable despite the external risks ⚡.

The development matters for India’s energy sector because longer or disrupted shipping routes can raise freight, insurance and crude procurement costs, affecting refiners, fuel prices and industrial expenses. India’s ability to source crude from more countries reduces dependence on any single route or supplier, while expanded refining capacity supports continued exports even during periods of shipping stress. However, the minister noted that changes in distant shipping lanes can still alter factory costs and household budgets.

OI Charts data showed a mixed market response on 16 Oct 2026. The tracked upstream oil producer closed at ₹222, down 1.2%, with futures open interest rising 2.5% in a short build-up. Its futures premium was 0.45%, while the put-call ratio stood at 0.47. The ₹225 call had the largest open interest and the ₹220 put was the largest put position; max pain was ₹225 for the 27 Oct expiry. The stock remained close to its 52-week low of ₹218.53 recorded on 8 Oct 2026 and was down 4.5% over 20 sessions.

The tracked diversified refiner closed at ₹1,211, down 0.3%, while futures open interest increased 1.9%, also indicating short build-up. Its put-call ratio was 0.61, max pain stood at ₹1,210, and the largest call and put open interest were at ₹1,250 and ₹1,160, respectively. The stock had gained 3.5% over five sessions but remained down 2.6% over 20 sessions.

Traders will watch developments in Hormuz and the Red Sea, crude freight and insurance costs, domestic fuel pricing, and the ₹225 and ₹1,210-₹1,250 options zones. Continued supply stability would support refining operations, while further route disruption could pressure margins and sentiment across Energy ⚓.

Source: The Times of India and Urban Acres, 16 Oct 2026

Not investment advice. For informational purposes only.