Why in the News
Due to the West Asia conflict affecting shipments through the Strait of Hormuz, India is securing crude oil from alternative sources.
Key Points:
- India imports about 88% of its crude oil needs; nearly half normally passes through the Strait of Hormuz.
- Indian refiners are sourcing additional crude from:
- United States
- Russia
- West Africa and Latin America.
- Refineries have deferred maintenance shutdowns to maintain supply buffers.
- A 30-day U.S. waiver (till April 5) allows delivery of already-loaded Russian oil cargoes to India.
- Around 120 million barrels of Russian crude are currently in transit globally, some near India.
Concerns:
- Alternative routes may increase freight and insurance costs.
- Rising oil prices could increase India’s import bill, widen the current account deficit, and pressure the rupee.
- Every $10 rise in crude prices may raise inflation by ~20–25 basis points.
| [2011] In the context of global oil prices, “Brent crude oil” is frequently referred to in the news. What does this term imply? It is a major classification of crude oil. It is sourced from the North Sea. It does not contain sulphur. Select the correct answer using the code given below: (a) 2 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2 and 3 |
