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India's Oil Imports Navigate Strait of Hormuz Risks
27 Aug
Summary
- Bharat Petroleum Corp receives first Iraqi oil cargo amid Strait of Hormuz concerns.
- Company willing to lift Gulf oil from inside Strait if risks are commercially viable.
- New US legislation may impact India's significant Russian oil and gas purchases.
Bharat Petroleum Corp is anticipating the arrival of its inaugural Iraqi oil cargo for the fiscal year, with deliveries expected within days. The company has secured a vessel willing to traverse the Strait of Hormuz, a crucial energy artery. Officials indicated readiness to acquire additional oil from Gulf suppliers on a free-on-board basis, contingent upon vessel availability and manageable risk.
Securing crude oil presents a significant challenge for Indian companies, especially with potential US legislation targeting major buyers of Russian oil and gas. Russia currently fulfills a substantial portion of India's energy requirements, estimated between 35% to 45%. This potential disruption, coupled with ongoing pressures in the Strait of Hormuz, creates considerable uncertainty for meeting national demand.
