New Delhi. Amidst the increasing tension in the Middle East and interruptions in the supply of crude oil, India has decided to buy large quantities of oil from Russia. According to a report, India will buy about 30 million barrels of Russian crude oil. The report said that companies like Indian Oil Corporation (IOC) and Reliance Industries have signed agreements for Russian oil. Recently, America had asked to give India 30 days (till April 3) exemption to buy Russian oil shipments stranded in the sea. However, Indian officials have said that India is not dependent on the permission of any country to buy oil.
According to the report, after the attacks on Iran by America and Israel, the oil supply through the Strait of Hormuz has been affected. In such a situation, Indian refiners have secured those Russian ships which were already present in the Asian sea, but they were not finding buyers. Traders say that Indian Oil has bought about 1 crore barrels and Reliance has also bought at least 1 crore barrels of oil. The remaining oil has been taken by other Indian refining companies.
The ships turned towards India on the way.
Shipping data showed that several large oil tankers like Milo and Sara, which were earlier headed towards Singapore, have now diverted to Indian ports. The destinations of these ships were changed immediately after getting the American exemption. This time Russia has offered oil of grades like Urals, ESPO and Varande.
Focus on Russia instead of Saudi and Iraq
In the last few months, India had reduced the purchase of oil from Russia and instead started buying more oil from Saudi Arabia and Iraq. According to the data, imports from Russia fell to 1.06 million barrels per day in February, from more than 2 million barrels per day in mid-2024. Now due to the Middle East crisis, India has once again turned towards Russia, so that there is no energy shortage in the country.
70 percent of the required crude oil will now come from other routes.
Iran has blocked the Strait of Hormuz, from where 20 percent of the world’s oil supply comes. At the same time, India sources 50 percent of its crude oil and 54 percent of its LNG through this route, but considering the current situation, India has changed its strategy and reduced its dependence on this controversial route. At the same time, Indian companies want to fill their stock as soon as possible. India has increased by 10 percent the import of crude oil through routes which do not fall within the Strait of Hormuz.
