Russia offers more oil to India and China as Iran crisis disrupts supplies
text_fields
Russia is ready to increase oil supplies to India and China as tensions around the Strait of Hormuz disrupt global energy flows, Deputy Prime Minister Alexander Novak said on Wednesday.
“Our oil is in demand. If they buy, we will sell,” Novak told journalists, according to Interfax.
His remarks come as a widening conflict involving Iran, Israel, and the United States has led to the closure of the Strait of Hormuz, a key route for global crude and liquefied natural gas shipments.
The development follows India’s decision last month to halt purchases of Russian crude as part of an India-US trade deal. However, sources said India has now activated an emergency crude supply strategy amid rising Middle East tensions and threats by Iran to target passing ships.
As part of contingency measures, India is considering curbs on petrol and diesel exports and higher LPG rationing. Alternative shipping routes are also being examined. Officials are reviewing the possibility of stepping up purchases of Russian crude to secure supplies following the reported death of Iran’s Supreme Leader Ali Khamenei.
Government officials and oil marketing companies are holding multiple meetings to assess supply-demand dynamics and evaluate contingency options.
According to data from Kpler, about 2.5 to 2.7 million barrels per day of India-bound oil passes through the Strait of Hormuz. India is the world’s third-largest oil importer.
Kpler data showed Russia remained India’s largest crude supplier in February at over 1 million barrels per day, slightly lower than January levels, while imports from Saudi Arabia rose nearly 30 per cent month on month to over 1 million barrels per day.