Russia oil squeeze, China competition, Saudi pipeline shut: India's crude crunch
Where does that leave India, a country that imports around 90% of its crude oil? If crude oil prices continue to rise due to global supply constraints and Russian crude discounts ebb, will India’s crude oil bill manage another hit within months?
India has largely avoided an oil shock resulting from the US-Iran conflict. However, a combination of factors is causing concern for the country's crude oil imports. Russian crude oil remains the largest component of India's oil imports, yet attacks on its export infrastructure could tighten supply. Saudi Arabia, another major crude supplier to India, has also experienced pipeline shut-offs due to Houthi attacks, which could result in reduced supply of up to 4% of global oil.
Additionally, China may start competing with India for Russian crude oil as Iranian oil supplies continue to be limited. With Iran's oil supplies already choked and global oil inventories depleted, fewer alternative supplies are available. As a country that imports around 90% of its crude oil, India faces a potential increase in crude oil prices due to global supply constraints and Russian crude discounts. The situation may lead to another hit to India's crude oil bill within months.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
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