buy oil from russia
If the US does not extend the waiver on buying oil from Russia after this weekend, Indian oil refineries may have to reduce imports of Russian crude. There is already pressure on oil supply due to the ongoing Iran war in West Asia.
According to informed sources, America has not yet made it clear whether after May 16, other countries including India will continue to be allowed to buy Russian oil or not. If this exemption ends, Indian companies may have to buy expensive oil from other countries.
Russian oil imports reached record level in May
According to Kpler data, so far in May, India has imported about 23 lakh barrels of Russian oil per day, which is a record level. The reason for this was that America had given permission to import pre-loaded Russian oil.
However, if new oil ships from Russia do not come to India in the coming days, then the average import in the entire month of May may come down to around 19 lakh barrels per day.
Oil market disrupted due to Iran war
The Iran war has completely affected the global oil market. Oil supply from the Persian Gulf to big buyer countries like India has been badly affected. India is the third largest crude oil importer in the world and depends largely on imports for its needs.
India increased oil purchases from other countries
Before the deadline of May 16, India’s two big government oil companies Indian Oil Corporation and Bharat Petroleum have purchased crude oil from West Africa and America this week.
According to sources, Bharat Petroleum is now also considering making short-term oil supply agreements with Azerbaijan and African countries, so that dependence on the Persian Gulf can be reduced.
Sanctions were imposed to put pressure on Russia
Oil sanctions on Russia were imposed by America after the Ukraine war to increase pressure on Moscow. But due to the Iran war, global oil prices increased rapidly, due to which America had to provide some relief.
After the Iran war that started in February, oil supply through the Strait of Hormuz almost came to a halt, causing huge turmoil in the worldwide oil market.
