India will persist in its purchase of crude oil from Russia, irrespective of modifications to the US sanctions waiver, according to a senior government official on Monday. Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, expressed that the country’s energy security and commercial interests remain paramount amid escalating global oil prices and geopolitical tensions.

Sharma stated that India’s crude oil imports from Russia have been consistent before, during, and after the position of the US sanctions waiver. Her remarks came during a media briefing, as reported by news agency Reuters, highlighting India’s unwavering commitment to securing oil in defiance of international pressures.

Commercial Considerations for Oil Purchases

In response to questions regarding the American waiver on Russian oil, Sharma underscored that India’s decisions surrounding crude oil acquisitions are driven by commercial factors and the availability of supply. “It is basically the commercial sense which should be there for us to purchase,” she remarked, indicating that financial viability is a key component of India’s energy procurement strategy.

Despite rising global tensions and concerns about the stability of shipping routes, Sharma assured that India does not encounter a shortage of crude oil supplies. “There is no shortage of crude. Enough crude has been tied up repeatedly, and this, whatever waiver or no waiver, it will not affect,” she stated, reinforcing faith in India’s oil supply security.

The context of Sharma’s statements arises as global oil prices remain elevated due to ongoing conflicts in West Asia and apprehensions about potential supply disruptions, particularly around critical shipping passages like the Strait of Hormuz.

High Global Oil Prices and Market Pressures

Current global crude oil prices continue to soar amidst geopolitical tensions and supply chain concerns. As of 4:15 PM, Brent crude was trading at $110.28 per barrel, up by 0.93%, while West Texas Intermediate (WTI) crude rose by 0.85% to reach $106.32 per barrel. The volatility in the market has been attributed to fears of disruption to global energy supplies following attacks linked to the ongoing conflict in the region.

India’s reliance on imported oil is significant, with approximately 85 per cent of its crude oil needs being sourced from abroad. This dependency has intensified pressure on the nation, especially in light of rising oil prices, a weakening rupee, and growing inflation concerns. In response to these challenges, the Indian government recently increased the prices of petrol and diesel by Rs 3 per litre, aimed at alleviating the financial strain on state-run oil marketing companies.

In recent years, Russian crude has become a vital component of India’s oil import portfolio due to its competitive pricing compared to other global benchmarks. The comments from the Ministry of Petroleum and Natural Gas suggest that India is unlikely to reduce its purchases of Russian oil, given that supplies continue to be commercially viable and accessible.

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