By Admin 
India Backup Plan for Oil Supply Crisis: The increasing military conflict between Israel and Iran has destabilized the global environment. The death of Iran’s Supreme Leader Ayatollah Ali Khamenei in the Israeli attack and the subsequent closure of the Strait of Hormuz has raised the possibility of a serious impact on the supply of crude oil.
In such a situation, there is bound to be increasing global uncertainty and concern for countries dependent on crude oil imports. It can have an impact on other countries including India. In such an environment, what other options are available to India and what will be the future strategy? Let us know about this…..
Will crude oil prices go on fire?
Experts who have understanding of the subject say that this time the scope of this conflict arising between Iran and Israel is bigger than the previous disputes. Due to which this war is also likely to last a long time. In such a situation, it will affect the prices of crude oil. Iran has decided to close the Strait of Hormuz. 20 percent of the world’s crude oil passes through this route.
Due to closure of the road, there will be a reduction in supply, due to which the prices may skyrocket. This can be gauged from the fact that on Friday, the benchmark Brent crude futures in the international market had closed at the level of $ 73 per barrel. Experts believe that if this dispute continues for a long time, the price of crude oil may reach the level of $ 110 per barrel.
India’s backup plan to deal with the crisis
In view of the possible shortage in supply, Indian refinery companies have already started their preparations. According to experts, work is being done rapidly on contingency plans to deal with unexpected situations. India’s plan is to load oil from ports that are not dependent on the Strait of Hormuz.
For this, preparations are being made to use alternative ports of Saudi Arabia and United Arab Emirates. Besides, plans are also being made to place additional orders to oil producing countries outside the Gulf region. So that the supply chain is not disrupted and the country remains fully capable of dealing with any emergency.
India’s dependence on Iran
In fact, any attack on any oil base in the Gulf region has an impact on the global supply chain. Besides, the expectation of increase in crude oil prices also remains. The Strait of Hormuz is an important trade route for India.
About 40 percent of the country’s total crude oil imports and about 55 percent of Liquefied Natural Gas (LNG) reach this route. In such a situation, it is very important for India to keep alternative routes ready. Because the country is largely dependent on imports for its energy needs.
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