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News Topical, Digital Desk : Amid pressure on crude supplies due to Middle East tensions, India has received some relief. The country's refineries have purchased approximately 60 million barrels of crude oil from Russia for April delivery , significantly alleviating supply concerns.
According to the information, this oil has been purchased at a premium of $5 to $15 per barrel (about Rs 470 to Rs 1410 per 158 litres) (Brent Premium Russian Oil) compared to Brent.
This level of purchases is comparable to March, but more than double that of February. This means that India has already managed any potential shortage by rapidly increasing its purchases.
Special discount from America
A key reason behind this significant decision is a special waiver from the United States. The US allowed India to accept Russian cargoes that had been loaded onto ships before March 5th (later March 12th) to offset the supply shortage caused by the blockage in the Strait of Hormuz.
Traffic affected in the Strait of Hormuz
In fact, the war in the Middle East has virtually disrupted oil movement through the Strait of Hormuz. India, which imports a large portion of its oil needs, is rapidly working to find alternative supplies.
Companies returning to the market
According to the report, companies like Mangalore Refinery and Hindustan Mittal Energy (Russian Oil), which had reduced their purchases of Russian oil since December, have now returned to the market. This clearly indicates that India is adopting a practical approach and moving towards cheaper and more available sources.
Not only Russia, but India is also diversifying its supplies. It is estimated to purchase about 8 million barrels of oil from Venezuela for April, the most since October 2020.
Overall, India has taken a timely step amid a potential crude shortage. This will not only secure supplies but also provide relief to oil prices in the future.
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