North India Statesman
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The global economy has been staggering since Donald Trump came to power. Sometimes he runs tariff hunter on his own free will, sometimes he leaves the order on the order. Donald Trump, who considers himself the boss of the world, has become more businessman than a politician. Those who want to fill the American treasury by lifting the tariff stick and bending other countries. Donald Trump, who specializes in looting the credit, has even made claims to end the wars going on in the world. He has also threatened Russia to end the war with Ukraine within 50 days. Trump has clearly stated in his threat that if Russia does not end the war within 50 days, it will face heavy tariffs. He also said that 100 percent tariffs will be imposed on countries trading with Russia. It is clear that Trump’s threat is indirectly for countries such as India, Brazil and China, who buy large amounts of oil from Russia.
Will the oil threatened to make oil expensive?
Russia is not ready to bow down to the game of power. If the situation of war persists and Trump puts secondary tariffs on Russia, then oil prices can make a difference. India buys cheap oil from Russia. He buys 35-40 percent of his needs from Russia. If the import of oil from Russia stops due to Trump’s threat, then India will have to make alternative arrangements. Oil supply may be interrupted if imports of cheap oil stops from Russia. If there is disruption in supply, then the price of crude oil in the global market will increase and it will affect the price of petrol and diesel. According to Union Petroleum Minister Hardeep Puri, Russia accounts for 10 percent of the world’s total consumption. If this stake is completely removed, the world will have to buy oil from the remaining 90 percent.
How much does India depend on Russian oil?
India and China buy crude oil from Russia on a large scale. According to the Ministry of Petroleum, India is dependent on imports for oil. He imports about 88 percent of his needs. The biggest thing is that India alone comes to 38 percent of Russia’s total oil exports. According to a report by the think tank Chautham House, India’s Russian oil imports in 2022 were less than 2 percent before the Ukraine War. After the war, Russia was banned and India took advantage of this and bought very cheap oil from Russia.
Will oil imports decrease from Russia?
Union Petroleum Minister Hardeep Singh Puri said in a recent event that Russia is one of the largest producers in the world with over 9 million barrels per day. Russian oil contributes about 10 percent to the global oil supply of about 97 lakh barrels. He said that if this oil disappears from the market due to US sanctions, it is clear that there will be a huge reduction in oil supply. Crude oil prices will also increase due to reduction in supply. Crude oil prices can go above $ 130–140 per barrel.
What is India’s alternative plan?
If Russian oil is banned and this oil is not available in the market, then obviously the price will increase. India will have to avoid joining Russia and America war. Instead of supporting America in cheap oil race, India will find options for other countries. According to Hardeep Puri, India has prepared a backup plan for this. He said that where India used to buy oil from 27 countries earlier, now it imports oil from 40 countries. However, Russia has been our biggest supplier. There will be some disruption in the supply due to increasing ban. On the one hand, the trade agreement with the US is stuck, and on the other hand the US has made a new bet on oil. Hardeep Singh Puri said that India will buy from where oil will be available at a lower price.
