New Delhi: Indian refinery executives expect supply pressures to ease partly after the IEA said Wednesday that its 32 member countries will make 400 million barrels of oil available to the market at a pace determined by each country.
The timing of the release will be crucial, executives said. If a large volume is released quickly-sufficient to prevent those countries from seeking barrels from the international market -it would make it easier for buyers such as India to secure supplies, an executive said. As pressure on global supplies eases, prices will begin to reflect that, he added.
Oil prices shot past $100 per barrel again on Thursday, overlooking the IEA’s record release.
India received its first crude cargo at Mumbai port from the Gulf region on Wednesday afternoon since the Iran war began on February 28, according to shipping data. It was a Liberia-flagged tanker that started its journey on March 3 from Saudi Arabia’s Ras Tanura port and reportedly turned off its transponder while crossing the Strait of Hormuz.
Government officials did not confirm media reports that India and Iran have struck a deal on safe passage for India-bound oil tankers crossing the strait.
Oil minister Hardeep Puri told Parliament that crude supplies from non-Hormuz routes are rising, accounting for about 70 per cent of India’s imports now, compared to 55 per cent before the conflict.
India is also encouraging LPG consumers to switch to alternative fuels such as kerosene, biomass and coal, Puri said.
