India's Strategic Russian Oil Acquisition Amid Global Pressure

Despite global pressure, Indian oil refiners continue to source crude oil from Russian suppliers, according to sources speaking to ANI. Key determinants of their procurement decisions include price, crude grade, inventories, logistics, and other economic considerations, sources disclosed.

India's choice to import Russian oil is strategic, considering Russia's status as the second-largest crude producer and exporter globally. With significant output at 9.5 million barrels per day, fears of Russian oil dislocation earlier spiked Brent crude prices to $137 per barrel in March 2022. Amidst such challenges, as the third-largest energy consumer, dependent on 85% imported crude, India strategically secures affordable energy while adhering to international regulations.

U.S. President Donald Trump previously claimed India might halt Russian oil purchases, deeming it a positive development if true. Despite these comments and reports of halted purchases due to tariff threats, Indian refineries' actions remain compliant with international norms. Historical insights reveal Russian oil was never sanctioned; rather, it was subjected to G7/EU price-cap mechanisms. India's responsible stance in energy procurement ensured market liquidity and price stability, preventing potential price surges and inflation threats globally. Indian Oil Marketing Companies (OMCs) continue adhering to $60 per barrel Russian crude cap, aligning with global standards.

(With inputs from agencies.)