Russia is ready to shift its crude oil to India due to disruptions in the Middle East. Supply with around 9.5 million barrels of crude near Indian waters will arrive within a week or two. According to Industry sources, the non-Russians are not certain about where the cargoes had headed, but they have assured that the vessels will reach within the week, giving the refiners great relief.
India is sensitive to supply shocks, as crude stocks only cover about 25 days of demand, but refiners have assured that the country has enough fuel inventories and crude to meet domestic demand for diesel, fuel and other necessary fuels for up to 8 weeks. The government source from New Delhi also claims that India is seeking new and different alternatives to import crude oil, liquefied petroleum gas and liquefied natural gas if the war in the Middle East continues for up to 10-15 days.
About 40 % of India’s crude oil is moving through the Strait of Hormuz, one of the world’s most important oil export routes, due to the dynamics and consequences. Indian refiners generate about 5.6 million barrels of crude per day, and Russia wants to help India meet its 40% crude needs. U.S. President Donald Trump has discussed putting tariffs on imports from India over its purchase of Russian oil, claiming that New Delhi agreed to stop purchasing Russian oil.
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However, India has not yet halted its purchase. Indian officials had declared that the country’s strategy is to glorify its supply based on market conditions. Both China and India, being Asia’s biggest energy consumers, are grabbing less storage and being more exposed to regional supply shocks than China and Russia has also declared its intention to supply liquefied natural gas to India.
