India will buy 3 crore barrels of Russian crude oil:Reliance IOC make bookings under latest deals

Amid the ongoing war between Iran and Israel, the Strait of Hormuz route has been reportedly closed. In such a situation, India will buy about 30 million (3 crore) barrels of crude oil from Russia. This claim has been made in a Bloomberg report. The report stated that companies like Indian Oil Corporation (IOC) and Reliance Industries have made oil agreements with Russia. Recently, the US claimed to have given India a 30-day exemption (until April 3) to buy Russian oil shipments stranded at sea. However, Indian officials have already said that India does not depend on any country’s permission to buy oil. Purchased oil stranded in Asian maritime boundary According to the report, oil supply through the ‘Strait of Hormuz’ has been affected after US and Israel’s attacks on Iran. In this situation, Indian refiners have secured Russian ships that were already present in Asian waters but were not finding buyers. Traders say that Indian Oil has purchased about 10 million barrels and Reliance has also bought at least 10 million barrels of oil. The remaining oil has been taken by other Indian refining companies. Ships changed course towards India while en route Shipping data shows that several large oil tankers like Russian ships ‘Mylo’ and ‘Sara’, which were earlier heading towards Singapore, have now changed their route towards Indian ports. The destinations of these ships were changed immediately after receiving US exemptions. Russia has offered grades like Urals, ESPO and Vorande oil this time. Focus back on Russia after reducing from Saudi and Iraq In the past few months, India had reduced oil purchases from Russia and started taking more oil from Saudi Arabia and Iraq instead. According to figures, imports from Russia decreased to 1.06 million barrels per day in February, which was more than 2 million barrels per day in mid-2024. Now due to the Middle East crisis, India has once again turned towards Russia to ensure there is no energy shortage in the country. 70% of required crude oil will now come through other routes Iran has blocked the ‘Strait of Hormuz’, through which 20% of the world’s oil supply passes. While India imports 50% of its crude oil needs and 54% of LNG through this route, given the current situation, India has changed its strategy and reduced dependence on this disputed route. Meanwhile, Indian companies want to fill their stock as soon as possible. 10% increase: India has increased crude oil imports by 10% through routes that do not fall within the Hormuz zone. New Route: Previously, India imported 60% of its crude oil requirements through routes other than Hormuz, which has now been increased to 70%. This will reduce the impact of war in Gulf countries on India’s supply chain. Note that India imports about 85-90% of its crude oil requirements from 40+ countries. Iran Assures: Cargo Movement Through Hormuz Will Resume Soon The government has also indicated that ship movement near the Hormuz route may resume soon. Iran’s Stance: According to sources, Iran has promised that it will not target its neighboring countries unless they are attacked from their territory. Global Offer: The good news for India is that many other countries in the world are also showing interest in supplying oil and LNG to it. Officials say that India currently has surplus LNG stock available. Country’s oil reserves increased, government’s confidence grew India’s energy security has strengthened despite the ongoing turmoil in West Asia. According to government officials, recent reviews have shown improvement in oil stock levels.