By Admin 
Middle East Tensions: The increasing tension in West Asia and the fear of closure of the Strait of Hormuz have created new challenges for India. According to reports, in view of the possible disruption in oil supply from the Middle East, India has again started turning to Russian oil. India imports about 90 percent of its total oil needs and has recently increased its oil purchases from the Middle East instead of Russia. But due to the war-like situation related to Iran, India is now taking steps towards purchasing crude oil from Russia to reduce the risk.
Trend towards Russian oil increased again
It is noteworthy that in recent weeks, Indian oil companies had reduced the purchase of crude oil from Russia to some extent, keeping in mind the possible ongoing trade deal with the United States. It was believed that this could affect the trade agreement. After this decision of Indian companies, Russia had diverted the excess oil supply towards China. However, now the situation seems to be changing. According to Bloomberg report, ship-tracking data shows that some shipments of Russian crude oil headed towards East Asia have now been diverted towards India.
According to data from ship monitoring platforms Kpler and Vortexa, the two tankers contain about 1.4 million barrels of crude oil, which can be unloaded at Indian ports this week. Concern increased over energy security: After the military action by Israel and the United States on Iran, instability in the global oil markets has increased and crude oil prices are seeing a rise.
Trouble due to attack on Strait of Hormuz
Prices in the market have started rising even before the actual supply is disrupted, as investors fear that the strategically important Strait of Hormuz may be affected. About 20 percent of the total oil trade in the world passes through this narrow sea route, which is located between Iran, Oman and the United Arab Emirates. The news of attack on an oil tanker and disruption in maritime traffic has further increased the market’s concern.
Experts say that even the mere fear of disruption in the energy market is enough to drive prices up. Oil is not just a common commodity but an important resource influencing global geopolitics. Energy supplies have been used as a tool of pressure many times in history, be it the oil embargo of the 1970s or Russia’s cutoff of gas supplies to Europe in 2022. After the attacks on Iran, the price of global standard Brent Crude has reached around $76 per barrel, which was around $68 a few weeks ago.
Also read: Tension in West Asia brought bad news for India, now how will the dream of developed India come true?