look news india
A situation of war has arisen between Iran and Israel. This is the first time that both the countries have come face to face. The Russia-Ukraine war and Israel-Hamas tension have already increased the world's problems. Amidst all this, the war between Iran and Israel will also have a great impact. There will be an increase in the prices of crude oil. This may also affect inflation. However, it will take time to assess international oil prices.
India is the third largest consumer of crude oil in the world and is dependent on imports to meet more than 85 percent of its needs. Given the country's dependence on imports, this is likely to have a deep impact on the economy. After the increase in oil prices, India's trade balance, foreign exchange reserves and the value of rupee will also be affected.
In view of the increasing tension between Iran and Israel, an increase in international oil prices has been seen in the last few days. , Global benchmark Brent crude has crossed $90 per barrel. Major oil producers have been cutting production for some time. After this, increasing tension in the Middle East is putting further pressure on prices. Some experts say that if a conflict breaks out between Iran and Israel, it will affect the transportation system, oil production and other things. This is likely to push oil prices to $100 per barrel or even higher.
Let us tell you here that India is currently not buying oil from Iran because America has imposed some sanctions on it. But China buys oil from Iran on a large scale. If the war affects Iranian supplies, buying oil from Russia could be a gamble. India is currently at the top among the countries purchasing crude oil from Russia.
According to a report, officials from India's refining sector said they are closely monitoring the situation to assess the impact on supplies and prices. According to industry insiders, one of the main things to watch will be the impact of the conflict on oil shipments through the Strait of Hormuz between the Persian Gulf and the Gulf of Oman. India receives a major share of West Asian oil through this route.
Most purchases from Russia
According to Kpler ship tracking data, Russia was the largest source of crude oil for India in March, with 33 percent of India's total crude oil imports during the month coming from Russia. Iraq, Saudi Arabia and the United Arab Emirates accounted for about 48 percent of India's total oil imports in March. After that, refinery sector officials did not seem too concerned about oil availability, even as concerns grew over rising prices.
