New Delhi, March 25: India is getting its crude oil needs from Russia as the situation in the Strait of Hormuz in the Gulf is still unclear. India has bought 60 million barrels of Russian crude oil for the next month.
India, which was buying oil from Russia at low prices before the Iran war, now has to pay higher prices. Oil is being bought at a price of 5 to 15 dollars per barrel higher than Brent crude prices. There is a lot of demand for oil and gas globally. Their supply is also in a difficult situation.
India has bought 60 million barrels of crude oil for delivery in April. A similar amount of oil was also bought for March. India started buying oil from Russia as oil supplies were disrupted after the Iran war. Russian oil tankers, which were bound for China and elsewhere, had arrived at Indian ports.
The US had said that India was allowed to get oil from Russia due to the blockade in the Strait of Hormuz. After this, India has increased its oil purchases from Russia. Most of the oil that India needs is being sourced from Russia.
Indian refinery companies like Mangalore Refinery and Petrochemicals, Hindustan Mittal Energy etc. have now resumed buying Russian crude oil. These refineries had stopped buying oil from Russia in December due to US pressure. They were getting oil supplies from Saudi Arabia and Iraq. Since the oil booked from these Gulf countries is stuck in the Strait of Hormuz, it is inevitable to get oil from Russia.
India is now getting some oil not only from Russia but also from Venezuela. In April, 8 million barrels of crude oil will come to India from Venezuela.