Kathmandu. The war in the Middle East is now taking a different turn. Iran has shelled oil facilities in Saudi Arabia. It also announced an attack on any oil tanker or ship that passes through the Strait of Hormuz.
This is the corridor through which 20 per cent of the world’s energy imports and 50 per cent of India’s crude oil is imported. As a result, the global oil crisis seems to be deepening. As a result, the price of crude oil is continuously increasing. Crude oil prices rose more than 10 percent on Monday and rose 2.55 percent on Tuesday.
According to experts, the crisis could escalate and push global oil prices higher. It could potentially exceed $100 per barrel. This means that the global crude oil crisis is exacerbating. However, India is almost fully prepared to face this crisis.
What is India’s preparation?
According to the Economic Times, people familiar with the discussions between the government and the industry have said that India is considering a number of contingency options, including banning petrol and diesel exports, increasing crude oil imports from Russia, and imposing demand-management measures such as LPG rationing to meet the emergency fuel shortage caused by the blockade of the Strait of Hormuz.
Oil export ban
Since India exports about a third of its petrol, a quarter of diesel and about half of aviation fuel, the government is mainly considering banning petrol and diesel exports. The biggest problem is LPG. India relies on imports for about two-thirds of its consumption and has limited inventories. India imports 85-90 per cent of its LPG.
How many days are left to ?
According to industry estimates, if there is a supply disruption, the total stock will be less than two weeks, including coastal inventory and cargo already transiting in the Strait of Hormuz. Meanwhile, state-owned refiners — Indian Oil, HPCL and BPCL — have started ramping up LPG production at some petrochemical integrated refineries. India’s crude oil reserves are expected to last for 20 to 25 days.
Increased oil and gas prices
}
Oil and gas prices rose on Monday. Brent crude futures are up nearly 10% to $80 a barrel and European gas prices are up more than 40%. That’s because escalating conflict in the Middle East and attacks on Saudi Arabia’s Ras Tanura refinery and Qatar’s LNG plant have halted production. The Strait of Hormuz is now closed.
TAG_OPEN_strong_29 How long will this war last?
According to experts, Iran’s military and technology are far less than those of the US and Israel. As a result, the conflict is unlikely to last long. However, US President Donald Trump has said that the war could last for four weeks. –Agency
