India doubles its petroleum exports to Europe in 3 years backed by oil imports from Russia: Rosneft CEO

New Delhi: India has doubled its petroleum product exports to Europe in the past three years, backed by higher imports of cheaper oil from Russia, said the chief executive officer (CEO) of Rosneft Igor Sechin.
Addressing the 28th St Petersburg International Economic Forum, the CEO of Russia's state-owned energy company said that global energy security is impossible without Russia, Venezuela and Iran. He noted that these countries, with which oil trade has been sanctioned by the US, account for one-third of the global liquid hydrocarbons reserves and 15% of the global production.
'Being the second largest buyer of Russian crude oil, India has practically doubled its export of petroleum products into Europe over the past three years," he said.
Also read: If Iran's oil is cut off, China will pay the price
India increased the import of Russian oil after the western sanctions on Russia's energy supplies following its invasion of Ukraine in February 2022, as it offered India deep discounts. Russian oil currently comprises about 35% of India's overall oil imports, up from around 2.5% before the Russia-Ukraine conflict started.
He also said that many oil-producing countries need an oil price much higher than current levels to balance their budgets. 'Thus, according to International Monetary Fund calculations, in 2025 this price is more than $90 per barrel for Saudi Arabia's budget," he said.
The August Brent contract on the Intercontinental Exchange stood at $77.01 per barrel, 2.33% lower than its previous close. However, prices have soared from $64-65 after Israel launched aerial attacks on Iran on 13 June.
Also read: Brazil auctions off several Amazon oil sites despite environmentalists, Indigenous protests
Speaking on energy security, the CEO said, 'Russia, Venezuela and Iran are key players in the energy market and global energy security directly depends on their supply. These countries account for one-third of the global liquid hydrocarbons reserves and 15% of the global production. Without their resource base, it is impossible to facilitate the transition to the new landscape of the global energy industry."
Observing that Russia's actual contribution to the global economy is proportional to its share in the world resource balance, he said that Russia's share in global hydrocarbon exports is about 15%.
Also read: Oil India: Looking beyond benefits of crude price rally
Talking of India's growing energy demand, he said, 'India, which many now expect to experience explosive growth in energy demand, is on the verge of choosing its energy consumption model. In this country, we are also seeing a growing interest in coal-fired and nuclear generation. For example, more than 30 coal mines are scheduled to reopen this year, and five new coal mining projects are expected to come onstream. India is also building six new nuclear reactors."
He also noted that the Indian government plans to add at least 80 GW of additional coal-fired capacity by 2032 to meet growing electricity demand.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

an hour ago

• Time of India

D-Street braces for 'risk-off' selloff

MUMBAI: Investors on the edge after an escalation in the West Asia conflict with most Dalal Street players expecting the Sensex to open lower on Monday. They also expect crude oil prices to spike, which in turn would put pressure on the rupee. On Sunday, after the US bombed three nuclear sites in Iran and the latter resolved to close the Strait of Hormuz through which about 20% of the world's crude oil and natural gas pass, market players said oil prices could spike soon. On Friday, as Dalal Street investors ignored the geopolitical tensions between Iran and Israel, the sensex recorded a four-digit points gain to close at 82,408 points. And Nifty on the NSE gained 319 points to close at 25,112 points. Globally, Brent was trading at above the $77/barrel level while WTI crude was around the $75 level. Both were trading at near their four-month high levels. Despite the global headwinds, India's economic fundamentals on the other hand could act as a balancing act to those negative factors, Kotak Mahindra Mutual Fund MD Nilesh Shah said. "Indian equity and rates market is like a man having average temperature with one leg in cold water and the other in hot water. Domestic factors support current valuation for long term investors expecting moderate returns. (However) global factors from (the US president Donald) Trump's policies to oil price/supply are boiling hot," he said. Shah said that investors need to keep a watch on the availability of oil as well as the price. "We have enough forex reserves to manage higher oil prices in double digits. (However) oil prices crossing triple digit or restricted supply will have an adverse impact on the market." Shah added that investors should use any market correction as an opportunity to accumulate while traders should remain on a cautious mode. The geopolitical uncertainty could also push up prices of gold as investors move to 'risk off' mode, meaning they sell risky assets like equities and move to haven assets like gold and govt bonds, market players said. A section of the market players believes that in case Iran doesn't react aggressively to the US's move to bomb its three nuclear sites, the markets may soon recover after a negative opening in Monday's early trade. One trader even pointed out that TA 35, the main stock market benchmark in Israel, was up more than 1% in Sunday's trading session, indicating investors in Israel had ignored the geopolitical tensions. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

Economic Times

an hour ago

• Economic Times

An uncertain world gets more perilous

Agencies The US on Saturday entered the Israel-Iran war, bombing Iran's three main nuclear sites-Isfahan, Natanz and Fordow. Donald Trump declared it a 'spectacular military success', but it remains to be seen whether the military operation has indeed destroyed Iran's nuclear capability or just caused severe damage to these sites. Iran has said it reserves all options to defend its sovereignty, interests and people. Retaliatory action is certain-where, how and how big remains the question. What is certain is that the world is in for even more US entry into the war was unprovoked. Trump has been unhappy with the pace and direction of the Washington-Tehran talks, and Israel has been egging on the US to take out Iran's nuclear capabilities. Reports on IAEA offsite radiation suggest that the sites have been severely damaged, and Iran had, in anticipation, likely moved its stockpile of enriched and highly enriched uranium to an undisclosed location. The US has acknowledged that the Isfahan site was more secure than anticipated. That would mean the Iranian N-programme will be delayed, maybe even temporarily derailed, but not destroyed. The US attack could be the factor that gives the Iranians that extra push to get the programme over the country that has been attacked, unprovoked, reserves the right to respond. For the region, indeed the world, the big question is the nature of the Iranian response. It could be attacks on US bases and military personnel, or disruptions of ship traffic in the Strait of Hormuz, affecting global trade. The US action will likely strengthen the Russia-Iran-China-North Korea axis, creating further geopolitical fractures and fragmentation. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Looking for quick buck in unlisted shares? Better think twice! Small finance banks struggle with perception. Will numbers turn the tide? Aadit Palicha on Zepto dark store raid, dark patterns, and IPO China rare earths blockade: Will electric vehicles assembly lines fall silent? Flames below deck: The silent threat lurking in cargo holds Is India ready to hit the aspirational 8% growth mark? For medium- to long-term investors with moderate risk appetite: 6 large-cap stocks with an upside potential of up to 40% Sin goods, but not sin stocks from a long-term perspective: 6 stocks from liquor industry with an upside potential of up to 34%

Business Standard

2 hours ago

• Business Standard

India has weeks of oil supply, imports continue via many routes: Puri

India, the world's third-largest oil importer and fourth-biggest gas buyer, has enough energy supplies to meet requirements for several weeks and continues to receive supplies from several routes, Oil Minister Hardeep Singh Puri said amid escalating tensions in the globe's biggest energy supply regions. In a post on X, the minister said the government has been "closely monitoring the evolving geopolitical situation in the West Asia since the past two weeks." "Under the leadership of PM @narendramodi Ji, we have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now," he said. The Strait of Hormuz, which Iran is threatening to shut down following US strikes on its nuclear facilities, is an important transit for oil coming from the West Asia. About 2 million barrels per day (bpd) of crude oil out of India's total import of 5.5 million bpd transits through the narrow waterway. However, India has diversified sources -- from Russia to the US and Brazil -- which can readily fill any void. Russian oil is logistically detached from the Strait of Hormuz, flowing via the Suez Canal, Cape of Good Hope, or Pacific Ocean. Even the US, West African, and Latin American flows -- though costlier -- are increasingly viable backup options. "Our Oil Marketing Companies have supplies for several weeks and continue to receive energy supplies from several routes. We will take all necessary steps to ensure stability of supplies of fuel to our citizens," Puri said. Global oil prices have jumped to their highest level since January after Israel struck Iran, in a dramatic escalation of tensions in the Middle East. Rates of the benchmark Brent crude were up more than 10 per cent to $77 a barrel. India imports more than 85 per cent of its crude oil needs and roughly half of its natural gas requirement. More than 40 per cent of the oil imports and half of gas imports come from the Middle East. Despite the spike on Friday, oil prices are still more than 10 per cent lower than where they were at the same point last year. They are also well below over $100 a barrel rate seen in early 2022 following Russia's invasion of Ukraine. Russia is India's largest supplier of crude oil, which is refined into fuels like petrol and diesel in refineries. Qatar is India's biggest supplier of natural gas, which is used to make fertilisers, generate electricity, and turned into CNG to run automobiles and piped to household kitchens for cooking.