Due to tension in West Asia, India adopted a special strategy, increased crude oil imports from Russia

America has entered the Iran-Israel war, having dropped bombs on three Iranian nuclear sites in the early hours of Sunday. After this, Iran has threatened to retaliate. Consequently, tensions are expected to increase in West Asia, which will directly impact oil prices. However, anticipating the situation, India has already ramped up its crude oil imports from Russia and America as a strategic response. In June, India purchased more oil from Russia than it did from West Asia and Gulf countries combined.

According to data from global trade analyst firm Kappler, India imported crude oil from Russia at a rate of 20-22 lakh barrels per day in June, the highest in the last two years. In May, India had bought crude oil from Russia at around 11 lakh barrels per day. Previously, India relied on Russia for only one percent of its oil needs, but now that figure has surged to 40-44 percent of its total oil imports.

It's evident that due to heightened tensions in West Asia, India has revised its import strategy. In June, India purchased roughly 20 lakh barrels of oil per day from Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait. However, oil prices may rise as a result of the increased tensions. Iran has threatened that if America becomes involved in its war with Israel, it would attack merchant ships in the Strait of Hormuz, through which 40 percent of India's oil still flows. Additionally, Houthi rebels, supporting Iran, may target merchant ships in the Red Sea, which could create significant disruptions for oil imports from Gulf countries. This change is why India has sought to reduce its oil dependence on these nations.

India is the third-largest crude oil importer in the world, and historically, it imported the majority of its oil from Gulf countries. However, following Russia's attack on Ukraine and the concessions offered to India on oil purchases, India has increased its crude oil imports from Russia. Now, India is not solely reliant on Gulf countries for oil imports; it is also sourcing crude oil from Russia, America, and Latin American countries. Nevertheless, oil imports from America come at a higher cost. Kappler's report indicates that India procured 4.39 lakh barrels of crude oil daily from America in June, up from the previous figure of 2.80 lakh barrels per day. India processes around 51 lakh barrels of crude oil in its refineries, from which petrol and diesel are extracted.