In April last year, due to the widespread spread of the new crown epidemic, India initiated a level one blockade, and most industries “stopped work and production.” Statistics show that India’s crude oil demand plummeted by nearly 70% at that time. However, now that the epidemic situation in India has improved, demand for crude oil has also surged.
According to the latest market news, on March 12, Beijing time, three industry insiders revealed that Saudi Aramco, the world’s leading crude oil giant, maintained its average monthly oil supply to Indian refiners in April, while also Rejected India’s request to increase crude oil supplies. You know, in early March, India had already “slammed” to the OPEC+ Organization of Petroleum Exporting Countries, including Russia, hoping that these countries would no longer cut production.
According to data released by relevant Indian departments, due to the resumption of industrial and various economic activities, the country’s crude oil processing business surged in January this year, with crude oil throughput reaching 5.16 million barrels/day, hitting a new high in the past 13 months (since November 2019).
As the world’s third largest crude oil demander, India relies on imports for nearly 83% of its crude oil. Previously, the International Energy Agency (IEA) issued a report stating that 65% of oil shipments in the Strait of Hormuz come from India. Therefore, the Indian economy is vulnerable to oil shocks.
On March 9, the chairman of Hindustan Petroleum Corporation publicly stated that India would consider purchasing Iranian crude oil if the time comes. Indian officials also recently revealed that Iranian crude oil is expected to return to the Indian market within 3-4 months. However, India’s move faces great uncertainty.
For a long time, due to the restrictions of the United States, Iran has been unable to carry out oil transactions with other countries, not to mention, India has also obeyed the words of the United States. This also means that if the United States does not nod, it will be difficult to develop crude oil business between India and Iran.
The IEA has predicted that India’s daily crude oil demand will increase by 190% from the current 3 million barrels to 8.7 million barrels by 2040. But with so-so relations with major oil-producing countries, how can India protect its own demand for crude oil? </p