The energy sector is witnessing significant disruptions as Saudi and Iraqi oil companies have reportedly halted crude oil supplies to India’s Nayara Energy refinery. Sources reveal that this development stems largely from payment difficulties caused by sanctions impacting the procurement of Iraqi crude.

Nayara Energy, one of India’s leading refiners, has been grappling with the sudden shortfall of nearly 3 million barrels of crude oil every month from its Gulf suppliers. This supply gap has forced the refinery to operate at reduced capacity levels of around 70–80%, affecting production and downstream operations.

The stoppage highlights the wider ripple effects of geopolitical sanctions on global oil trade, particularly impacting refineries reliant on Middle Eastern crude. As Nayara works to navigate these challenges, industry experts anticipate potential adjustments in sourcing strategies and pricing.

For Indian energy security, this pause signals a critical moment to explore diversified crude oil supplies and strengthen payment mechanisms to avoid future disruptions. Stay tuned for further updates on how this situation unfolds and its impact on India’s refining landscape. Read more