India’s Russian oil imports helped prevent crude prices from exceeding $130 per barrel, maintaining supply amid global disruptions.
The current supply of crude oil from Russia to India has contributed to energy price stability in the world, states the Petroleum and Natural Gas Minister, Hardeep Singh Puri. Addressing an audience in Vienna, Puri said that the decision to stop the flow of oil from Russia may have led to world crude prices going over and above $120–$130 per barrel.
Russia produces more than 9 million barrels of crude oil daily. Cutting this supply in the world market, which stands at about 97 million barrels per day, would have involved an impractical reduction in global consumption of over 10%. As Puri expounded, this kind of deficit would have created a situation where consumers ended up competing over smaller quantities, pushing prices up to a high level.
He underlined that the full international sanctions against Russian oil never existed. Instead, world decision-makers settled on a price limit mechanism. He added that India was purchasing subsidized quantities of Russian crude oil under this price cap, which helped make energy more affordable for itself and alleviated pressure on the supply side.
India’s Energy Strategy and Market Response
Some countries in the Western world imposed bans on Moscow’s exports following the Russia-Ukraine war. With these emerging developments, India did not stop but rather increased its imports of oil from Russia. The minister defended this policy, referring to the increasing energy demands in India and the realities of the operation of international oil markets.
India imports about 80 percent of its natural oil and half of its natural gas. To meet its increasing demand, the country has diversified its suppliers by sourcing products from various other countries and regions. As Puri remarked, when people criticize India’s strategy, they do so without knowing much about how the global energy markets operate.
Indian giant refiners, including Reliance Industries and Nayara Energy, have become the top purchasers of Urals crude oil from Russia. These are purchases that help secure national energy and balance it in international markets.
Domestic Energy Development and Global Position
India is the third-largest energy consumer in the world, requiring approximately 5.4 million barrels of oil per day. The government is trying to exploit local fossil resources present, such as the new venture in the Andaman area.
India also hopes to lessen its reliance on imports by combining increased domestic production with imports. Authorities have demonstrated that this solution will create long-term energy security and strengthen the nation in case the global landscape changes.
