India Boosts Crude Imports Amid Middle East Tensions

Indian refiners are increasing crude oil imports from the US, Russia, and West Africa to ensure supply amidst ongoing Middle East conflict. The reliance on non-Middle East sources has grown, along with concerns about rising costs due to elevated crude prices, freight, and insurance premiums.

In response to escalating tensions in the Middle East, Indian refiners are actively negotiating for additional crude oil imports from non-conflict zones such as the US, Russia, and West Africa. Industry officials confirm this as a strategic move to ensure adequate supplies.

With the Strait of Hormuz being a critical transit point now fraught with risk, India is sourcing 70% of its oil from outside the Middle East. State-run energy companies are maintaining normal processing rates, creating stockpiles to meet near-term demand.

Despite sanctions-related hurdles, the US Treasury has granted waivers for Russian oil deliveries. However, increased crude prices and logistical costs are anticipated to impact India's economy, raising concerns among analysts.

(With inputs from agencies.)