India russia oil trade: US President Donald Trump recently claimed that India had stopped buying oil from Russia. Regarding his claim, government sources told ANI that this claim is misleading and India is still purchasing Russian oil. He clarified that India’s oil import is completely based on value, crude oil quality, existing reserves, logistics and other economic factors.
Sources said that Russia is the second largest crude oil producer and exporter in the world, with a daily production capacity of around 9.5 million barrels, which is about 10% of the global demand. Russia exports around 4.5 million barrels of crude oil and 2.3 million barrels per day. In March 2022, when there was uncertainty about Russian oil in the global market, Brent crude prices reached $ 137 per barrel.
India’s balanced stance on energy security
India is the third largest energy consumer in the world and is dependent on imports for its 85% crude oil needs. In such a situation, India has taken a strategic decision to ensure energy security. India has purchased Russian oil only by following the price cap of $ 60 per barrel implemented by the G7 and the European Union. India’s government oil companies did not buy oil from countries like Iran and Venezuela, on which the US has imposed direct restrictions.
India’s role in European repetitive and global energy balance
Sources said that if India had not purchased concessional Russian oil, then the price of global crude oil could go above $ 137 due to a cut by OPEC+ countries by 5.86 million barrels per day, causing more inflation to grow worldwide.
At the same time, the European Union has now recommended a new price limit of $ 47.6 per barrel for Russian crude oil, which will be applicable from September. But during this time Europe itself has been the largest importer of LNG (liquefied natural gas) from Russia, Europe bought 51%of the total exports of LNG, while China (21%) and Japan (18%) finished second and third.
India’s two-toll response to Trump’s claim
Donald Trump said in response to an ANI question, “I have been aware that India will no longer buy oil from Russia. If this is right, it is a good step. Let’s see what happens next.” On this, India made it clear that no such decision has been taken and India’s energy policy is completely under the purview of national interest and international rules.