India's Crude Dilemma: Navigating Oil Supply Shocks Amid Middle East Conflicts

India's oil supply vulnerabilities intensify amid Middle East conflicts, posing risks due to thin reserves. With only 20-25 days of current inventory, India relies heavily on the Middle East for crude, unlike China, which has a six-month reserve. Global impacts include rising energy prices and potential supply shortages.

Amid escalating Middle East conflicts, India faces heightened vulnerability to oil supply disruptions due to its limited reserves. Analysts highlight that, unlike China, which boasts six months of crude storage, India holds just 20 to 25 days' worth, making it susceptible to supply shocks.

With the region accounting for 55% of India's crude imports, recent geopolitical tensions, such as Israeli and U.S. strikes on Iran, could severely impact the country. The closure of the Strait of Hormuz, a critical oil passage, has already pushed Brent crude prices up by 7%.

Experts warn that prolonged disruptions could lead to soaring fuel costs and force India to seek alternative suppliers. In contrast, countries like Japan and South Korea have substantial reserves, covering 254 and 208 days, respectively, providing a buffer against market instability.

(With inputs from agencies.)