The Tamesis
Indian refiners reportedly bought millions of barrels of Russian oil stranded at sea after the Donald Trump administration last week agreed to grant New Delhi a 30-day exemption from sanctions on cargo loaded on ships from March 5.
One of the biggest buyers was Reliance Industries, India’s largest private refiner, which bought at least 6 million barrels of Russian oil for March delivery. Reuters reports Citing industry sources with knowledge of the matter.
The purchase comes as the U.S.-Israeli-led war against Iran has shaken global crude prices and seen Tehran all but halt its activities in the strategically important Strait of Hormuz.
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Reuters pointed out in the report that India is the world’s third largest oil importer, and about 40% of its oil is imported from the Middle East through the strait.
Supplies from the Middle East account for the highest share of India’s oil import mix after Indian refiners slashed purchases of Russian oil over the past two months under pressure from Washington.
Reliance Group has been one of the largest buyers of discounted Russian oil in India since Moscow began its invasion of Ukraine. But Trump has threatened to impose sanctions on those purchases and impose 25% tariffs on broader Indian exports, Forced refining machine Cut back on these purchases.
Russia’s oil share in January minimum share Since late 2022, India’s oil demand has been playing an important role in India’s overall mix. Instead, New Delhi turned to the Middle East to meet its oil needs.
fuel scare
Apart from oil, India is also worried about its gas and cooking gas supplies.
The world’s most populous country is the fourth-largest buyer of liquefied natural gas (LNG) and the second-largest buyer of liquefied petroleum gas (LPG), such as that used in cooking, mostly from the Middle East.
On Tuesday, it ordered tighter controls on the distribution of the largest liquefied natural gas (LNG), requiring priority for supply to households, the transport sector and the production of LPG.
This means other industries such as fertilizer plants, the tea industry, ceramics and tile companies, and restaurants and hotels will need to deal with uncertainty and potential disruptions.
Meanwhile, concerns about fuel supplies are not limited to India.
At least a fifth of the world’s oil supplies normally pass through the Strait of Hormuz waterway, and rising crude prices have caused panic among importers around the world, including in Asia.
South Korea has ordered the activation of a $68 billion market stabilization fund, while Japan is reportedly considering tapping into its national oil reserves.
Queues were seen at gas stations as far away as Vietnam, Myanmar, Kathmandu and the Philippines.
Oil-poor Philippines will turn to four days work week Starting this week, Vietnam’s Ministry of Trade Calling on local businesses Employees were encouraged to work from home on Tuesday.
War is better than sanctions
The fuel scare means Washington’s changing attitude toward Russian oil extends beyond Indian purchases.
On Monday, Trump told reporters he would waive some sanctions on oil to increase supply and lower prices that have upended the world’s energy and transportation industries.
“We are … waiving certain oil-related sanctions to lower prices,” Trump told reporters after talks with Russian President Vladimir Putin.
He also mentioned Chinese President Xi Jinping.
“We have sanctions on some countries. We’re going to lift those sanctions until things are resolved,” Trump said. He did not name any countries or provide details on which sanctions would be lifted.
He made the remarks after speaking with Russian leaders. Russia is one of the world’s largest oil producers and exporters, while China is Russia’s main trading partner and major oil importer.
Oil prices fall, stocks rise Stocks experienced wild swings on Tuesday after Trump said the U.S.-Israeli war with Iran would end sooner than expected.
He said Washington may continue to lift sanctions on unspecified countries if the war ends.
“Then who knows? Maybe we won’t have to wear them. There will be so much peace,” he added, reiterating his statement that the United States was ready to escort oil tankers through the Strait of Hormuz.
- Vishakha Saxena, AFP
Also read:
Oil falls, Asian markets rise as Trump says war will end ‘soon’
Oil prices top $100 a barrel as Asian leaders rush to limit impact of war
Middle East crisis pushes up oil prices, rout intensifies in Asian markets
War with Iran could hit some of Asia’s biggest economies hard
Russian oil share of India imports falls to lowest since end-2022
U.S. sanctions force Indian and Chinese refiners to cut Russian oil output
India rejects Russian oil for US deal as protests brew
India could face higher tariffs if Russia continues to buy oil
Iranian ‘ghost tanker’ delivers jet fuel to Myanmar air force
