6 days ago
India Diversifies Oil Supplies as Hormuz Becomes Less Powerful
The Strait of Hormuz is an important sea route for moving oil and gas.
The article says Iran’s efforts to use the strait as a weapon may encourage countries to depend on it less.
India is buying more oil from Russia and other regions instead.
It is also storing more fuel and finding new sources of cooking gas.
During a recent disruption, more of India’s oil came through routes that did not use Hormuz.
This helps protect India from running out of physical supplies.
However, a crisis in Hormuz could still make oil prices rise around the world.
India is trying to make sure that no single route is essential to its energy supply.
India is reducing its reliance on oil shipments through the Strait of Hormuz.
Russian crude accounted for more than half of India’s crude imports in July.
Indian refiners have expanded sourcing from the United States, Latin America and Africa.
India has increased strategic reserves and sought alternative LPG supplies from the United States and Algeria.
Non-Hormuz crude routes reportedly rose from about 55% to 70% during the recent disruption.
- Who
- India, its refiners and Gulf energy producers.
- What
- India is diversifying oil and LPG supplies to reduce dependence on the Strait of Hormuz.
- Where
- The strategy concerns India, the Strait of Hormuz and alternative suppliers in Russia, the United States, Latin America, Africa and Algeria.
- When
- The article cites July imports and a recent disruption, but gives no year.
- Why
- To reduce the risk of a physical energy-supply shock if shipping through Hormuz is disrupted.
Key facts
- Russian crude share
- More than half of Indian crude imports in July.
- Non-Hormuz sourcing
- Reportedly increased from around 55% to 70% during the recent disruption.
- Alternative crude suppliers
- The United States, Latin America and Africa.
- Alternative LPG suppliers
- The United States and Algeria.
- Strategic reserves
- India has expanded its strategic reserves.
- Remaining risk
- A Hormuz crisis could still raise global oil prices even when individual shipments use other routes.
Sources
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