Middle East Crisis Oil Prices: Due to the situation arising in the Middle East, there is an atmosphere of uncertainty regarding the prices of crude oil. Its impact is visible on the entire global economy. The situation of countries dependent on oil imports seems to be getting worse.

The news of shortage of petrol and diesel in neighboring countries Pakistan-Bangladesh is making headlines. However, oil prices still remain stable in India. Let us know what preparations the government and oil companies have made to protect the common man from rising prices…

Relief from the strategy of oil companies

Government oil marketing companies like IOCL, BPCL and HPCL play an important role in preventing sudden increase in fuel prices in India. According to experts, these companies adopt a balanced strategy to handle price fluctuations. When crude oil is cheap in the international market, these companies create a kind of financial buffer by earning good profits.

Later, when oil prices increase, an attempt is made to reduce the direct impact on customers by using the same accumulated capital. In this process, companies definitely have to suffer losses for some time.

But, with this strategy common people get relief from inflation. However, if crude oil prices continue to rise for a long time, then companies have to change the prices.

Expert expressed concern

According to a report published in ET, regarding rising oil prices, experts have indicated that there is a limit to the relief that consumers are getting at present. According to Madan Sabnavis, Chief Economist of Bank of Baroda, government oil companies are currently trying to control prices by bearing cost pressure at their level. Due to which common people are not suddenly burdened with inflation.

However, it is not easy to maintain this situation for a long time. He believes that if the price of crude oil in the international market goes above $100 per barrel, it will be difficult for companies to bear losses. In such a situation, the possibility of increase in fuel prices will increase and its direct impact will be on the general public.

What further options are available?

At present, the prices of petrol and diesel remain stable in the country. However, the country is dependent on imports from other countries for 85 percent of its oil needs. If the war drags on and crude oil prices cross $110 per barrel, the government will have to bear the losses of the oil companies in the form of subsidy. As a second option, the government is left with the option of increasing oil prices.

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Russia Iran Military Support: A new information has come to light amid increasing tension in West Asia. Investigation has revealed that Russia’s technical help may have been involved in the manufacturing of the missiles fired by Iran. On the other hand, America’s President Donald Trump has once again made a big claim regarding the war. Meanwhile, due to the increasing conflict, India has also changed the sources of its oil imports and has increased the purchase of crude oil from Russia.

Shocking information has come to light in the investigation of the debris of missiles fired by Iran. Testing has revealed that the help of Russian experts may have been taken in the manufacturing of these missiles. Investigations have also indicated that Russian and Soviet era experts have contributed to the technology and manufacturing process of these missiles. This means that Iran did not prepare these missiles completely on its own. After the attacks by America and Israel, Russia is seen openly standing in support of Iran.

‘I will end the war whenever I want’

Meanwhile, Donald Trump has once again claimed that the ongoing war with Iran may end soon. He said in a phone conversation that this war will end when he wants. According to him, there is almost nothing left to target in Iran now. Amidst the increasing tension in West Asia, Trump said that the situation is such that he can end this war whenever he wants. However, despite this statement of Trump, attacks and retaliation are still going on in the area.

‘The campaign will continue until the goals are achieved’

Meanwhile, Israel has said that the military operation being conducted in collaboration with America will continue. He clearly said that this action will continue until all the targets are achieved and the final outcome of the campaign is decided. According to him, no time limit has been set for this campaign and it will be continued for a longer period if needed.

India increases purchase of Russian oil amid conflict

The impact of the increasing military conflict in West Asia is also visible on the energy market. India has increased the purchase of crude oil from Russia by almost fifty percent in the month of March. According to ship monitoring data, India has purchased about fifteen lakh barrels of Russian oil this month. In February this quantity was approximately one million forty thousand barrels per day.

India is the third largest crude oil importer in the world and buys about eighty-eight percent of its total oil requirement from abroad. Amidst the fear of interruption in oil supply due to increasing tension in West Asia, India has decided to increase oil purchases from alternative sources.

America has once again given a statement on giving temporary exemption to India to buy Russian oil. White House Press Secretary Caroline Levitt told reporters that the Indian government was given this exemption because India has previously cooperated with international rules and sanctions. He said that this decision has been taken only for a short time and its purpose is to keep the oil supply stable in the world.

According to ANI, during the press briefing, Levitt said that this decision will not bring any major economic benefit to Russia. According to him, this step has been taken to meet the temporary shortage in the global oil market. Levitt also said that this decision was taken after discussions with Donald Trump, the US Treasury Department and national security officials. Describing India as a good partner, he said that India has followed the rules of sanctions earlier also.

Decision taken due to Iran war

According to the White House, this decision has been taken mainly in view of the disruption in global oil supply due to the Iran war. Levitt said that when the worldwide oil supply decreased, India was temporarily allowed to take Russian oil so that the market could remain stable. He also told that a large part of the Russian oil that was coming to India was already going via sea, hence the Russian government would not get any significant financial benefit from it.

Earlier this month, US Treasury Secretary Scott Bess had also said that the oil supply has been affected due to the ongoing war in the Middle East. He had said in an interview that America had earlier asked India to reduce the purchase of Russian oil and India cooperated in this. Now, in view of the reduction in global supply, temporary permission has been given to buy oil from Russia.