Indian Oil Imports
Context:
• India buys most of its oil from West Asia but now USA has emerged as the fourth biggest source for importing oil.
• This is in context at a time when Russian oil is under heavy sanctions and Asian nations are looking to secure its energy needs.
Background:
• The sudden rise in the oil prices post Ukrainian crisis has put a stress on the public finances of different countries of which India is not an exception.
• India has been engaged with Russia on many platforms which also includes energy sector.
• For its recent engagement with Russia for energy needs, India is facing criticism from the west.
• The west criticizes saying that if any country is engaging in business with Russia, it will help to fund its war on Ukraine.
Current Status:
• Iraq supplies 23% of India’s oil, followed by Saudi Arabia at 18% and the United Arab Emirates at 11%. The U.S. share of the Indian market will rise to 8% this year.
What Russia did?
• To overcome the blow of western sanctions, Russia is offering oil at a discounted price to make its oil competitive.
• Indian companies which are already suffering from the high oil prices have exploited the opportunity.
• Indian Oil Corp., the country’s top refiner, recently ordered 3 million barrels of Russian oil through a tender, while Hindustan Petroleum Corp. has booked 2 million barrels for May loading.
• European countries continue to import Russian oil and gas, and India cannot be stopped from doing it, is the Indian argument.
Source: THE HINDU
