As Bloomberg news agency has learned, state-owned Indian oil refining companies Bharat Petroleum Corp. and Hindustan Petroleum Corp have begun hastily looking for alternative oil suppliers to the aggressor country Russia.
Points of attention
- The rise in oil futures following Trump's threats underlines the volatility in global oil markets and the potential impact of geopolitical tensions on oil prices.
- India's shift away from Russian oil showcases the complex interplay between global politics, economic interests, and energy security in the oil industry.
Trump managed to scare India
According to journalists, India is hastily looking for alternative sources of oil in the Middle East, North Sea, and Mediterranean regions.
The country's authorities made this decision after loud threats from American leader Donald Trump towards the aggressor country Russia.
As is known, the head of the White House recently officially confirmed that he is ready to impose powerful secondary sanctions against countries that buy Russian oil if Moscow does not agree to a ceasefire in Ukraine.
After the US president's words, oil futures rose, in particular, the American West Texas Intermediate grade rose by 3.1%.
What is important to understand is that India almost never bought Russian oil until 2022, but after the war began, it became the second largest importer after China.
Last year, Russian supplies provided almost 40% of its imports, mostly Urals oil from western ports.
Cheap Russian resources have allowed India to reduce purchases from the Middle East and Africa.
