US Iran Tensions Send Crude Oil Prices Soaring Towards $100
The recent US-Iran strikes have pushed crude oil prices towards $100 per barrel. This has significant implications for India, which imports nearly 90% of its crude oil requirements.
Brent crude oil jumped over $4 on Tuesday and rose to $95.68 a barrel on Wednesday, according to Reuters. If fighting continues, oil shipments through the Strait of Hormuz could face further disruption.
The International Energy Agency (IEA) reports that global oil stocks have fallen by 41 crore barrels since the war began. The IEA expects the global oil market to remain in deficit in the July-September quarter, by about 18 lakh barrels a day.
Surendra Prasad Mishra, Former Chief Manager of Oil & Natural Gas Corporation (ONGC) India, estimates that every sustained US$10/barrel increase in Brent crude can increase India's annual crude import bill by approximately US$19 billion.