Russia’s biggest oil corporation Rosneft steps in to help India with its current security efforts against the backdrop of the drone attacks on Saudi Arabian Oil Co.,
or Saudi Aramco that have made the biggest-ever disruption in global crude oil supplies, Igor Sechin,
chairman of Rosneft conveyed through his meeting with India’s oil minister Dharmendra Pradhan on Tuesday in New Delhi.
The meeting begins as India’s state-run oil selling businesses (OMCs) strive to secure a long-term deal for getting crude from Russia. It gains weight as it follows Saturday’s noise attacks in Saudi Arabia, which is the second-largest crude supplier to India. India is very sensitive to emotional oil price changes as it imports 80% of its crude oil and 18% of its natural gas.
“This incident is huge,” Pradhan told journalists about the drone strikes. “However, yesterday, we raised oil, and today also, we raised oil (from Saudi Aramco),” he said.
However, the place appears grim with S&P Global Platts saying that about three million containers per day.
(mbd) of Saudi Arabian crude supply will be changed for at least a month.
On Tuesday, automotive ammunition prices saw the most critical increase since 5 July. While the cost of petrol jumped 14 paise per litre to ₹72.17, diesel price increased 15 paise to ₹65.58 in New Delhi.
“The improvements in energy markets, including global crude oil stocks, in the 1ight of the recent attacks on Saudi Aramco’s facilities, was also considered. In this context, the special focus was on the development of oil stocks from Russian to Indian refineries,” the oil ministry said. Rosneft steps in to help India
India has been making its long-time ally Russia to hold the interest of energy-consuming countries through its engagement with
the Organization of the Petroleum Exporting Countries (Opec) at a time when the Opec+ agreement, including Russia, has expanded its contract for increasing cuts.
“CEO Rosneft showed their willingness to intensify their partnership aimed at increasing energy security in India
and providing high-quality feedstock and crude oil to India,” it said.
Meanwhile, the Indian government has had discussions with the Trump administration on energy imports from sanction- hit Iran, outside affairs minister S.
Jaishankar said on Tuesday and added that it was not a “static” issue.
India was among Iran’s top oil customers with imports of 23.5 million tonnes in 2018-19. However, with the US government’s limited waiver for Iranian oil imports to eight nations, including China and India, expiring on 2 May, India halted imports from Iran.
Jaishankar said India wants a likely and affordable supply of energy. “We are in dialogue with all suppliers including Iran,” he said.
India’s crude basket, which equated $47.56 and $56.43 a barrel in FY17 and FY18, individually, touched $59.35 in August, according to data from the Petroleum Planning and Analysis Cell. The average price jumped to $65.11 a barrel on 16 September. The Indian basket of crude describes the average of Oman, Dubai and Brent crude.