India is going to return to buying oil in the Middle East, reduce dependence on Russia
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India’s Oil Minister Hardeep Puri said his country’s dependence on Russian oil will decrease as suppliers in the Middle East offer better terms.
“Gulf cost margins are now much more attractive,” Hardeep Puri told the news agency. Bloomberg.
India’s consumption of Russian oil has skyrocketed following Russia’s military operation in Ukraine and the ensuing sanctions on Russian oil. Deputy Prime Minister Alexander Novak said that in 2022, oil supplies to India increased by 22 times. Russia has ousted Saudi Arabia and Iraq from the positions of India’s main suppliers of this raw material.
However, due to reduced discounts on Russian oil, spot purchases have become less attractive. As a result, contracts with traditional suppliers have become relevant again.
Oil imports from Russia fell to 1.57 million barrels per day in August, down 24% from a month earlier, according to Kpler. This is the lowest figure since January, despite the fact that so far Russia remains India’s largest supplier. “I made myself very clear. Today we are in the market and will buy from anyone,” added the Indian oil minister.
India meets over 86% of its oil demand through imports. This makes its economy very vulnerable to the dynamics of oil prices. Economists estimate that every $10 increase in prices leads to an increase in the budget deficit by $10 billion and a decrease in GDP by about 0.5%.
Read more about the situation – in the material “Russia is not chartered”.
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