America has entered the Iran Israel War. The US lashed out at three nuclear bases in Iran in the early hours of Sunday. After which Iran has also threatened to retaliate. There is a possibility of increasing tension in West Asia after this development. This will directly affect oil prices. However, India has already increased the import of crude oil from Russia and America under the strategy, realizing the situation. India bought so much oil from Russia in June, which is more than the total crude oil purchased from West Asia and Gulf countries.
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Heavy bounce in oil purchase from Russia
According to data from global trade analyst firm Capler, India has purchased crude oil from Russia at a rate of 20-22 lakh barrels per day from Russia in June. This is the highest in the last two years. In the month of May, India bought crude oil from Russia at about 11 lakh barrels per day. India earlier imported only one percent oil of its need from Russia, but now it has increased a huge increase and now India sources 40-44 percent of its total oil imports from Russia.
It is clear that India has changed its import strategy due to increased tension in West Asia in June. India has purchased oil from Iraq, Saudi Arabia, United Arab Emirates and Kuwait in June for a total of about 2 million barrels per day. However, oil prices may increase due to increased stress. Iran had threatened that if the US joined his war with Israel, they would attack trading ships in Hormuz Strait. 40 percent of India’s oil still reaches India via Hormuz Strait. In support of Iran, Huti rebels can also target business ships in the Red Sea. Due to which oil imports from the Gulf countries will face a lot of trouble. This is the reason why India has reduced its oil dependence on Gulf countries.
Import also increased from America
India is the third largest crude oil importer in the world and in the east India imported most of its oil imports from Gulf countries, but after the attack on Ukraine in Russia, India increased the import of crude oil from Russia when Russia gave heavy concession on oil purchases to India. Now India is not only dependent on the Gulf countries for its oil imports, but now we are purchasing crude oil from Russia as well as America, Latin American countries. However, we have expensive oil imports from America. According to Capler’s report, India procured every Hin 4.39 lakh barrels of crude oil from the US in June, while in the past the figure was 2.80 lakh barrels per day. India purchases about 51 lakh barrels of crude oil, which separates petrol and diesel in India’s refineries.