India's Low Oil Reserves Put It at Risk of Global Price Spikes

India's oil reserves are extremely low, making it vulnerable to prolonged disruptions in Middle East crude supplies. According to analysts, India can store enough crude and fuel for only about 74 days, but its current inventories cover only 20-25 days.

The country imports around 55% of its crude from the Middle East, with over 2.74 million barrels per day coming from this region. This is the highest since late 2022, after India's refiners reduced their intake of Russian oil under pressure from Washington.

Analysts say a prolonged war in the Middle East could lead to higher global prices and make it difficult for countries to access crude supplies. 'If we see a prolonged war, with the Strait out of use for an extended period, it would mean all countries globally competing for every incremental barrel of oil possible,' said Ajay Parmar, director of energy and refining at ICIS.

India's oil minister, Hardeep Singh Puri, has assured lawmakers that the country will take necessary steps to ensure fuel is available at affordable rates. However, the country may need to seek oil elsewhere if the Middle East supply is disrupted for an extended period.