US, Russia Vie for Share of India's Energy Market
The global energy market is witnessing a significant shift as India becomes a key player. The US and Russia are competing for a share of India's energy market, with each side trying to increase its presence. According to recent data, Russia was India's largest oil supplier in June and July, accounting for over 50% of Indian oil imports. However, imports of Venezuelan oil have been on the rise, increasing from zero in March to 383,000 barrels per day in August.
US oil is also gaining importance, with supplies from both the US and Venezuela accounting for about 11% of India's crude oil imports during this period. However, Indian refineries are facing challenges in replacing Russian or Middle Eastern oil with US oil due to its relatively light quality. Venezuelan oil, on the other hand, is better suited to these technological requirements.
The US has also become India's largest supplier of liquefied petroleum gas (LPG) and liquefied natural gas (LNG). In July, the US accounted for over 70% of India's LPG imports and nearly one-third of LNG supplies. The war in Iran has constrained supplies from the Middle East, traditionally dominating India's LPG imports.
The situation is further complicated by the proposed bill on sanctions against Russia, which could lead to tariffs of up to 100% on countries buying Russian energy resources. However, experts believe that this initiative is unlikely to cause an immediate reduction in India's purchases of Russian oil due to limited supply on the global market.