India’s oil imports from the United States will rise by 11 per cent this year, officials told Reuters as the country looks to secure supplies from around the world, including heavily sanctioned Russia. The rush to stock up comes amid a global surge in prices following Russia’s invasion of Ukraine, which led to brent crude topping $110 per barrel earlier this month. Spiking oil prices threaten to hamper growth opportunities and stretch public finances for an Indian (and global) economy still emerging from the pandemic-induced slowdown.
India is also looking to Russia; Indian Oil Corp has ordered three million barrels and Hindustan Petroleum Corp has booked two million barrels, Reuters said.A one-time purchase of three million barrels of crude oil is significantly less than India’s daily requirement – close to 5 million barrels, by some estimates – it does represent a possible steady source, at least for the future.
The fact Russia is selling at discounted prices – driven by a need to generate revenue in the face of the West’s sanctions – is a boost for India’s coffers.India’s move to buy oil from Russia – against which several nations, led by the West, have imposed sanctions – led to raised eyebrows from the US. The Indian government is already under some diplomatic pressure over its refusal to criticise Russia for its actions in Ukraine. India has urged an end to the violence but abstained from voting against Russia.
