Team Blitz India
NEW DELHI: India played a significant role in preventing potential chaos in the global crude oil market by increasing its oil imports from Russia after Moscow’s invasion of Ukraine in February 2022, according to the Petroleum and Natural Gas Ministry.
The ministry informed the parliamentary standing committee that had Indian refiners not imported Russian oil, estimated at 1.95 million barrels per day, it could have led to a surge in oil prices by £30-40, causing havoc in the international oil market.
In a recent report tabled in Parliament on December 20, the Petroleum Ministry representative highlighted the delicate balance in the crude oil market, explaining that a reduction of one or two million barrels per day by the Organisation of the Petroleum Exporting Countries (OPEC) could lead to a 10 to 20 per cent increase in prices, reaching up to £125-130 per barrel. By absorbing 1.95 million barrels per day, India played a crucial role in stabilising prices and preventing potential disruptions.
India, as the world’s thirdlargest consumer of crude oil, relies on imports for over 85 per cent of its requirements, with a refining capacity exceeding 250 million tonnes per annum.
The report underscored the transformation of Russia from a marginal player in India’s oil imports before the Ukraine war to becoming New Delhi’s top crude supplier.
