Price, Not Politics, Drives India's Oil Imports Amid Geopolitical Unrest

India's state-owned Oil and Natural Gas Corporation (ONGC) is driven by prevailing cargo and oil prices when it comes to importing spot crude cargoes from producers such as the United States and Venezuela, according to ONGC chairman and CEO Arun Kumar Singh. 'Imports are decided by the price, except for term crudes,' he said.

Singh noted that 60% or more of India's oil imports are influenced by the prevailing prices in a given month or two months prior, known as M+2. He emphasized that despite geopolitical upheaval affecting term supply from the Persian Gulf, 'economics prevail' and world trade will continue.

The Middle East crisis led to Indian refiners scrambling for alternative sources, with record crude oil imports from Russia helping to cushion the blow. India also turned to West Africa, Venezuela, Brazil, and the US for spot supply to offset lost Middle Eastern cargoes.