Fuelled for the Future: India’s Crude Strategy Holds Strong

Image Source: The Indian Express

India’s energy security remains intact despite escalating geopolitical tensions in the Middle East, according to Oil Minister Hardeep Singh Puri. The country has sufficient crude oil reserves to last several weeks and continues to receive supplies through multiple global routes.

Key developments:

India, the world’s thirdlargest oil importer, has diversified its energy sources significantly in recent years. A large share of its imports no longer relies on the Strait of Hormuz, a key chokepoint now under threat due to USIran tensions.
Oil Marketing Companies (OMCs) have built up inventories and are receiving shipments from alternative suppliers including Russia, the US, Brazil, and West Africa.
Russian oil, which bypasses the Strait of Hormuz, now plays a major role in India’s energy mix. Other viable options include shipments via the Suez Canal and the Cape of Good Hope.
The government is closely monitoring the evolving situation and has assured citizens of uninterrupted fuel availability.

Market context:

Global crude prices surged to their highest since January following Israeli strikes on Iran.
India imports over 85 percent of its crude needs, making supply diversification critical to shielding the economy from external shocks.

Sources: Free Press Journal, Hindustan Times Auto, Zee News, Moneycontrol, CNBCTV18.