Home NewsCommodities News India’s oil imports from U.S. to rise, amid criticism for Russian purchases By Reuters

India’s oil imports from U.S. to rise, amid criticism for Russian purchases By Reuters

by WOOWinvest
0 comment
India's oil imports from U.S. to rise, amid criticism for Russian purchases By Reuters

© Reuters. FILE PHOTO: A worker holds a nozzle to pump gasoline into a vehicle at a petrol station in Mumbai, India, May 21, 2018. REUTERS/Francis Mascarenhas

Sanjeev Migrani

NEW DELHI (Reuters) – India will increase its oil imports from the United States by 11 percent this year as the severely energy-strapped nation looks to get supplies from producers around the world, including Russia, which has been hit hard by sanctions, officials said on Saturday.

A surge in oil prices following Russia’s invasion of Ukraine last month could fuel inflation in India, strain public finances and hurt growth as India emerges from a pandemic-induced slowdown.

New Delhi has faced criticism from the West for its longstanding political and security ties with Moscow, with some saying doing business with Russia would help finance its war. India urged an end to violence in Ukraine but abstained from voting on Russia.

Japanese Prime Minister Fumio Kishida, who met Indian Prime Minister Narendra Modi during his visit on Saturday, said he would encourage a unified approach on Ukraine.

India buys most of its oil from the Middle East, but the U.S. has become the fourth largest source, and supplies will increase significantly this year, a government official with knowledge of the matter told Reuters.

Iraq supplies 23% of India’s oil, followed by Saudi Arabia with 18% and the United Arab Emirates with 11%. The U.S. market share in India will rise to 8 percent this year, in line with government policy, the official said, speaking on condition of anonymity.

Russia, which has been on the fringes of the Indian market, has been offering discounted oil since the February 24 invasion to soften the blow of sweeping sanctions imposed by the United States and other countries.

The country’s largest refiner, Indian Oil Corp, recently placed a tender for 3 million barrels of Russian oil, while Hindustan Oil has booked 2 million barrels for May loading.

Another government official defended the decision to buy oil from Russia, saying India welcomes competitive oil sales offers, including from Moscow, especially as global prices rise.

The second official said that European countries continue to import Russian oil and gas, and India cannot stop importing either.

Western sanctions have been ruled out to avoid any impact on energy imports from Moscow, the official said, and Russian banks that process payments for these sales remain on the SWIFT network.

Legal energy deals in India should not be politicized, the official said. “Countries that are self-sufficient in oil or importing from Russia cannot convincingly advocate restrictive trade.”

Disclaimer: Fusion Media reminds you that the data contained on this website is not necessarily real-time or accurate. All CFD (Shares, Indices, Futures) and Forex prices are not provided by exchanges, but by market makers, so prices may not be accurate and may differ from actual market prices, which means prices are indicative, Not suitable for trading purposes. Therefore, Fusion Media is not responsible for any transaction losses you may incur as a result of your use of these data.

Neither Fusion Media nor anyone associated with Fusion Media shall be liable for any loss or damage arising from reliance on information such as data, quotes, charts and buy and sell signals contained on this website. Please fully understand the risks and costs associated with trading in financial markets, which is one of the riskiest forms of investing.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy