India is the third largest consumer of crude oil in the world and depends on imports to meet more than 85 percent of its needs.

I ran-Israel Conflict: Situation of war has arisen between Iran and Israel. This is the first time that these two countries have come face to face openly. The Russia-Ukraine war and Israel-Hamas conflict have already increased the difficulties of countries around the world. Meanwhile, the Iran-Israel war will also have a huge impact on India. Crude oil prices will increase significantly. This may affect inflation. However, it will take some time to assess international oil prices.

India is the third largest consumer of crude oil in the world and depends on imports to meet more than 85 percent of its needs. Given the country’s import dependence, this is likely to have a deep impact on the economy. After the increase in oil prices, India’s trade balance, foreign exchange reserves and value of rupee will also be affected.

Oil prices expected to cross $100 per barrel

In view of the increasing tension between Iran and Israel, international oil prices have seen a rise in the last few days. Global benchmark Brent crude has crossed $90 per barrel. Production was being cut by major oil producers for some time. After this, due to increasing tension in the Middle East, more pressure is being seen on prices. Some experts have said that if the conflict between Iran and Israel starts, it will affect the transportation system, oil production and other things. Due to this, oil prices are expected to cross $ 100 per barrel or it may even exceed it.

Let us tell you that India does not buy oil from Iran at present because America has imposed some restrictions. But, China buys oil from Iran in large quantities. If Iranian supplies are affected due to war, the competition to get oil from Russia will increase. India is currently the largest buyer of Russian crude oil.

Officials in India’s refining sector said they were closely monitoring the situation to assess the impact on supply and prices. According to industry insiders, one of the key things to watch out for will be the impact of the conflict on oil shipments through the Strait of Hormuz between the Persian Gulf and the Gulf of Oman. A large part of West Asian oil comes to India through this route.

India imports maximum crude oil from Russia

According to Kpler ship tracking data, Russia was the major source of crude oil for India in March and accounted for 33 per cent of New Delhi ‘s total crude imports during the month. Iraq, Saudi Arabia and the United Arab Emirates accounted for about 48 percent of India’s total oil imports in March. After this, refinery sector officials do not seem to be too worried about the availability of oil. Even though concerns about rising prices have intensified.