In a relief for India, Iran has said the Strait of Hormuz is closed exclusively to vessels from the US, Israel, Europe and their allies. The strait, a narrow 33-km waterway between Iran and Oman through which almost 40 per cent of Indian crude imports pass, has been closed since March 1 after the US and Israel jointly launched strikes against Iran.
Russia and the US have weighed in on the ensuing oil crisis, given that more than a fifth of global crude and gas supplies transit the Hormuz. Russian Ambassador to India Denis Alipov said Russia “has been open to supplying crude oil to India”. US President Donald Trump said the US Development Finance Corporation would provide insurance “at a very reasonable price” to shipping firms in the region to ensure free flow of energy, and that the US Navy would protect ships in the Middle East if necessary.
Sources said India was currently sourcing almost 1 million barrels of crude a day from Russia, with more supplies in the pipeline, and that India was in a comfortable position regarding energy security. Current stock levels were comfortable and being replenished daily. There was no shortage of LPG or LNG, and no global crude shortage, they added.
India is in touch with other suppliers. Australia and Canada have offered gas, and India recently signed a new contract with the UAE and the US. India imports 195 million metric standard cubic metres per day (MMSCMD) of gas, with Qatar supplying 60 MMSCMD; India is seeking alternate gas markets after Qatar said it had shut gas production fearing strikes. Talks are underway with major oil producers and traders to buy crude and LPG.
India is also in discussions with the International Energy Agency and OPEC. On Monday, eight OPEC+ countries — Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria and Oman — announced they would produce additional supplies from April 1.
Photo for representational purpose only.
