Commodities
India's Oil Imports Navigate Turbulent Waters Amid Iran-US Conflict
The Iran-US conflict has had a significant impact on global crude oil prices, which surged to over $110 per barrel between March and May. However, as a ceasefire took hold, prices dropped sharply.
India, heavily dependent on fuel imports, had to adapt to the disruptions in oil flows through West Asia. The country's crude basket normally consists of Brent crude (70%) and Dubai-Oman benchmark (30%). As supplies from Iran were hit, India altered its mix to 78:22 in September.
The cost of the Indian crude basket reflects broader trends in the oil market. It was $69 per barrel in February, but is expected to rise above $100 again if hostilities continue.