Crude oil
US President Donald Trump, citing the war of Russia and Ukraine, asked Russia to stop the oil imports from Russia to stop oil imports. Along with this, he also imposed 25 percent tariff on India, which is currently staying till 7 August. Trump’s appeal to buy Russian oil neither accepted nor China, however, despite this, the prices of crude oil were steadily declining. Now she has stopped.
Oil prices have stabilized after the fall of the last three days. Investors are considering the risks of obstruction of Russian oil supply. Trump said that due to buying oil from Russia, tariffs will be increased on India’s exports to America. India has denied this step as wrong. Oil prices had increased in the last three months, but recently it saw a decline. The reason for this is that due to the strict trade rules of Trump, there are indications of recession in the world’s largest economy, which can reduce the demand for oil. Also, OPEC+ has decided to increase the supply of oil, which has increased pressure on oil prices.
India’s oil import from Russia
After the attack on Russia’s Ukraine in 2022, India became the largest buyer of Russian crude oil. India bought Russian oil at cheap prices, which was rejected by Western countries. Now India takes about one-third of its oil imports from Russia. China is also a big buyer of Russia. If there is any obstruction in the supply of Russian oil, then India may have to buy oil from other places. According to Ristad Energy, other countries of OPEC+, especially the Middle East, can meet this deficiency. Recently, OPEC+ has decided to increase oil production from September 5,47,000 daily.