New Delhi. Amidst the ongoing tension in West Asia and uncertainty over the Strait of Hormuz, India has taken a big step to secure its energy needs. Indian refineries have increased oil purchases from Russia and the United Arab Emirates (UAE) to maintain the supply of crude oil.
According to energy market experts, this decision of India is part of its strategy to avoid any kind of interruption in supply. Russia still remains India’s largest crude oil supplier. However, these things are increasing America’s concern.
Oil import from Russia increased
According to the data, India has increased the import of crude oil from Russia in June. There was a rise in purchases of Russian oil in June compared to May. Russian crude oil available at discounted prices is proving beneficial for Indian companies. This is the reason why despite fluctuations in the global market, India is giving priority to purchasing oil from Russia.
Purchases from UAE also increased
Apart from Russia, India has also continued purchasing crude oil from the United Arab Emirates. Experts believe that the purpose of increasing imports from UAE is to strengthen supply options. Amidst the risks related to the Strait of Hormuz, India is busy strengthening its energy security by arranging oil from different countries.
Decline in oil imports from America
During this period, there has been a decline in India’s crude oil imports from America. The share of American oil has decreased compared to before, while the supply from Russia and other countries has increased. For this reason it is being seen as India’s changing energy strategy.
Why is the Strait of Hormuz important?
The Strait of Hormuz is one of the world’s most important oil routes. A large part of the global oil supply passes through this route. This route is extremely important for major energy producing countries like Saudi Arabia, Iraq, Kuwait, UAE and Qatar. In case of any stress, it can affect the energy market of the entire world.
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