𝗜𝗻𝗱𝗶𝗮 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗲𝘀 𝗖𝗿𝘂𝗱𝗲 𝗢𝗶𝗹 𝗜𝗺𝗽𝗼𝗿𝘁𝘀 𝗔𝗺𝗶𝗱 𝗚𝗹𝗼𝗯𝗮𝗹 𝗖𝗿𝗶𝘀𝗶𝘀
India is changing its oil import strategy to manage supply risks. State-owned refiners have secured enough crude oil for two months.
Key Import Changes:
- Russian crude imports rose to 2.66 million barrels per day in June.
- Russia is now the largest source of crude oil for India.
- Russian oil trades at a discount of $1 to $2 per barrel compared to Dated Brent.
- Imports from the United Arab Emirates averaged 636,000 barrels per day.
- Venezuela became the fourth largest supplier with 209,000 barrels per day.
- United States crude imports dropped to 91,000 barrels per day.
Strategic Reserves Expansion:
- The government tasked ONGC to build a new strategic petroleum reserve.
- The project involves an investment of approximately $1.6 billion.
- The new facility will include a 1.75 million metric tonne underground storage cavern in Mangaluru.
- This addition will increase current emergency storage capacity by nearly one-third.
- Current total storage capacity stands at 5.33 million tonnes.
Market Impact:
- India imports about 90% of its crude oil needs.
- The Strait of Hormuz remains a central point for global oil flows.
- Oil marketing companies face daily losses of nearly Rs 1,000 crore.
- Petroleum Minister Hardeep Singh Puri stated fuel prices might decrease once refiners process cheaper crude stocks.
Source: The Times of India