India’s Pivot to Russia for Crude Oil amid Premium Charges by Saudi Arabia and Iraq | India
NEW DELHI: Oil minister Hardeep Singh Puri on Wednesday alluded to India’s pivot towards Russia after top suppliers like Saudi Arabia and Iraq started “charging a premium” for crude oil supplies to Asian markets.
In an interview to Reuters on the sidelines of the World Economic Forum in the Swiss ski resort of Davos, Puri said that costly shipments from traditional Middle East suppliers forced India to diversify its crude sources.
“Iraq followed Saudi Arabia in charging a premium for oil supplies to Asian markets which made their crude more expensive than crude sourced elsewhere,” the minister said, noting India is now buying from 37 countries up from 29 earlier.
Saudi Aramco, the national oil giant, this month cut the price of its flagship Arab Light crude to Asian customers to the lowest level in 27 months.
“I didn’t tell them to reduce it but they did it because they also wanted to. If you look at the Indian figures in the last 2-4 years, some of the major suppliers suddenly became number three and somebody who had only 0.2% (import share) went up,” Puri added.
Puri was referring India stepping up oil imports from Russia, which offered heavy discounts on crude after its invasion of Ukraine.
Before the invasion, Russia hardly accounted for 0.2% of India’s oil imports.
Iraq had replaced Saudi Arabia as the top oil supplier to India a few years ago. Now, cheaper supply from Russia in the aftermath of Western sanctions for its invasion has pushed it to the top spot followed by Iraq and Saudi Arabia.
India is the world’s third-largest importer and consumer of oil, and imports nearly 80 per cent of its needs.
In the 10 months after Russia invaded Ukraine, India saved $3.6 billion by importing heavily discounted crude from Russiat.
Shift towards green energy
Puri said that supply cuts by OPEC+, steep oil prices from key suppliers and geopolitical tension is also driving India to accelerate its energy transition.
Puri said that while OPEC+ nations have a right to decide on their energy production, supply cuts against such uncertainty, and the resulting adverse impact on global prices, will dent long term demand.
It is “imperative” for India to accelerate its transition to green energy in this scenario, he told Reuters.
Puri said that he is also talking to companies in Davos who are interested in making investments in India and with whom he would like Indian oil companies to partner with to explore acquisitions and assets in regions such as Latin America.
Puri said countries, including in the Middle East, had told him they want to acquire Indian oil companies outright, he said, but they are strategic and not for sale.
(With inputs from Reuters)
In an interview to Reuters on the sidelines of the World Economic Forum in the Swiss ski resort of Davos, Puri said that costly shipments from traditional Middle East suppliers forced India to diversify its crude sources.
“Iraq followed Saudi Arabia in charging a premium for oil supplies to Asian markets which made their crude more expensive than crude sourced elsewhere,” the minister said, noting India is now buying from 37 countries up from 29 earlier.
Saudi Aramco, the national oil giant, this month cut the price of its flagship Arab Light crude to Asian customers to the lowest level in 27 months.
“I didn’t tell them to reduce it but they did it because they also wanted to. If you look at the Indian figures in the last 2-4 years, some of the major suppliers suddenly became number three and somebody who had only 0.2% (import share) went up,” Puri added.
Puri was referring India stepping up oil imports from Russia, which offered heavy discounts on crude after its invasion of Ukraine.
Before the invasion, Russia hardly accounted for 0.2% of India’s oil imports.
Iraq had replaced Saudi Arabia as the top oil supplier to India a few years ago. Now, cheaper supply from Russia in the aftermath of Western sanctions for its invasion has pushed it to the top spot followed by Iraq and Saudi Arabia.
India is the world’s third-largest importer and consumer of oil, and imports nearly 80 per cent of its needs.
In the 10 months after Russia invaded Ukraine, India saved $3.6 billion by importing heavily discounted crude from Russiat.
Shift towards green energy
Puri said that supply cuts by OPEC+, steep oil prices from key suppliers and geopolitical tension is also driving India to accelerate its energy transition.
Puri said that while OPEC+ nations have a right to decide on their energy production, supply cuts against such uncertainty, and the resulting adverse impact on global prices, will dent long term demand.
It is “imperative” for India to accelerate its transition to green energy in this scenario, he told Reuters.
Puri said that he is also talking to companies in Davos who are interested in making investments in India and with whom he would like Indian oil companies to partner with to explore acquisitions and assets in regions such as Latin America.
Puri said countries, including in the Middle East, had told him they want to acquire Indian oil companies outright, he said, but they are strategic and not for sale.
(With inputs from Reuters)
Read More:India’s Pivot to Russia for Crude Oil amid Premium Charges by Saudi Arabia and Iraq | India