- Consequences of the Iran-Israel War
- India buys large quantities of oil from Russia
- India’s big move for energy security
Iran-Israel War: The ongoing tensions between Iran and Israel are now clearly affecting global oil supplies. After the impact on the Strait of Hormuz, the situation has become so critical that many countries are having to change their energy policies. Meanwhile, it is reported that India is preparing to buy approximately 30 million barrels of crude oil from Russia.
According to a Bloomberg report, Indian companies such as Indian Oil Corporation (IOC) and Reliance Industries have signed agreements to buy oil from Russia. It is reported that Indian Oil will purchase approximately 10 million barrels and Reliance will also purchase approximately 10 million barrels, while the remaining oil will be purchased by other Indian oil refiners.
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According to shipping data, some Russian oil tankers originally bound for Singapore have now diverted to India. This includes large ships like “Milo” and “Sarah”. These vessels were already in Asian waters but could not find buyers. India has now bought oil from these vessels. Earlier, purchases from Russia were reduced.
In the past few months, India had reduced its oil purchases from Russia and instead started buying more oil from Saudi Arabia and Iraq. In February, oil imports from Russia were around 1.06 million barrels per day, up from more than 2 million barrels per day in mid-2024. However, after rising tensions in the Middle East, India has once again decided to buy oil from Russia to avoid energy shortages in the country.
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Iran blocks the Strait of Hormuz, through which about 20% of the world’s oil supply passes. India used to import approximately 50% of its crude oil and 54% of its LNG requirements through this route. Considering the situation, India has now changed its strategy. Earlier, India imported about 60% of its crude oil through routes other than the Strait of Hormuz, but has now increased that to 70%. In addition, imports from routes outside the Strait of Hormuz have increased by 10%.
Government sources say shipping near the Strait of Hormuz could resume soon. Iran has also indicated that it will not target its neighbors unless the attack comes from its territory. Meanwhile, the relief for India is that many countries are showing interest in supplying oil and LNG to India. According to officials, India currently has sufficient LNG reserves.
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