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India readies oil import plan amid West Asia tensions
23 Feb
Summary
- India is developing contingency plans for crude oil imports due to rising West Asia tensions.
- Alternative routes and expanded supplier networks are being explored to ensure energy security.
- The country is working to bolster domestic reserves to meet energy needs.
India is actively developing contingency plans for crude oil imports due to escalating tensions in West Asia, which have driven global oil prices higher and sparked concerns over supply disruptions. The country is exploring alternative supply routes and is working to expand its network of oil suppliers. These measures are intended to ensure India's energy security in the face of potential disruptions.
Key strategies include securing crude oil supplies through pipelines designed to bypass the Strait of Hormuz, a critical chokepoint for global energy transit. India is also considering tapping into global reserves of major oil companies. Furthermore, efforts are being made to replenish strategic petroleum reserves, which currently hold about 10 days of inventory.
These preparedness measures come as global oil prices have seen a significant surge, partly due to increased US military presence in the region and threats directed at Iran. The situation is particularly critical for India, as it imports 90% of its crude oil requirements, with a substantial portion passing through the Strait of Hormuz.
