The war between US-Israel and Iran has thrown the world’s oil supply lines into utter chaos. With Iran blocking the Strait of Hormuz, most of the world has been starved of its crude oil needs as most of it passes through this strategic corridor. India has been one of the better placed countries through this crisis thanks to their policies over the last few years and diversification of its crude oil sources.
Now, India has bought 60 Million barrels of Russian Oil for delivery in April. This again shows Indian government’s foresight as they are preparing for a scenario where this conflict stretches longer.
The cargoes were booked at a premium of $5 to $15 a barrel to Brent crude oil. Similar volume was booked for the month of March, but it is more than double than that of February.
These purchases are aimed at easing concerns over crude availability remain while Strait of Hormuz remains under Iranian blockade. Though several Indian ships have been allowed to pass through the strait by Iran, India is not taking any chances.
Notably, India has been one of the biggest purchasers of Russian crude oil over the last few years as Modi administration has been exploring the entire world to see where Indians can get the best deal on Oil.
Thanks to these excellent negotiations over the last few years, the premium India is paying at this time won’t affect the domestic consumers, and this just guarantees energy security.
Over the last few years, India has steadily tried to move away from its reliance on Strait of Hormuz as the corridor that brings oil and gas to India, and the current war has vindicated that stand. Now, they are sourcing oil from elsewhere to cater to domestic demand while asking the involved parties to keep the Strait of Hormuz Open.
