Israel-Iran War: No Cause For Alarm Over Crude Oil Supplies At Present, Say Indian Govt Sources
Last Updated:
The market is experiencing an oversupply, with no imminent risk of shortage, the sources added
There is no cause for alarm regarding the global crude oil supply at present amid the Israel-Iran conflict and tensions in West Asia, Indian government sources told CNN-News18 on Tuesday. The market is experiencing an oversupply, with no imminent risk of shortage, they added.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) are producing approximately 120 million barrels per day. However, production has been slightly reduced by 5 million barrels, bringing the current production level to roughly 97 million barrels per day. Additionally, countries in the Western Hemisphere, such as Guyana, Brazil, and the United States, have become significant oil suppliers, contributing to the increasing global supply.
The supply chains remain uninterrupted through key maritime routes, including the strategically vital Strait of Hormuz. Despite ongoing geopolitical dynamics, such as those involving Iran and China, the global oil supply chains continue to function efficiently. For India, which consumes 5.6 million barrels of oil per day, only 1.5 to 2 million barrels are transported through the Strait of Hormuz, indicating a reduced dependency on this route.
India has successfully diversified its oil sources, increasing from 27 countries previously to 40 countries currently. This diversification strategy has enhanced the nation's energy security. In terms of strategic reserves, India maintains ample stock, ensuring that alternative sources can be tapped in case of a supply disruption. For liquefied petroleum gas (LPG), 50% of the demand is met domestically, and stock levels are adequate to meet current requirements.
In terms of export controls, India has the capability to halt oil exports if necessary to prioritise domestic availability. The government conducts daily review meetings to monitor the situation closely and ensure proactive responses to any changes. Among India's crude imports, 38% come from Russia. Furthermore, the Oil and Natural Gas Corporation (ONGC) has drilled 500 wells, providing India with access to reserves amounting to 42 billion barrels.
Regarding the price outlook, while marginal increases in freight and insurance costs may occur, the market has largely already factored in these changes. The overall situation appears stable, with sufficient measures in place to manage any potential disruptions effectively.
India is closely monitoring the Iran-Israel conflict to assess its impact on crude oil and gas supply, government sources said. Officials at the petroleum and natural gas ministry are evaluating the potential effects of escalating tensions between Iran and Israel on India's oil supply. Government sources have stated that due to India's diversified energy sources and its reliance on countries in the Western Hemisphere, the nation is prepared for any potential shortages. It has reserves in place for several weeks.
India will consider increasing supply from alternative energy sources, including those from West African nations, to ensure fuel supply security in case Iran blocks the Strait of Hormuz. Sources have indicated that there is an ample supply of crude oil coming to the market, so there is no shortage. India is receiving oil from Brazil, Guyana, Canada, the US, and other countries as well.
Up until 2025, the Strait of Hormuz has never been completely closed. Only a third of India's oil supply comes through this route. India is also factoring in increased freight corridor charges and a rise in pricing. Senior oil ministry officials and industry leaders are conducting scenario analyses and preparing contingency plans for potential supply disruptions and price volatility, said sources.
The oil ministry reports that India maintains crude oil and petroleum product storage facilities capable of meeting 74 days of domestic consumption requirements. The strategic petroleum reserves account for 9.5 days of this total capacity.
Get breaking news, in-depth analysis, and expert perspectives on everything from geopolitics to diplomacy and global trends. Stay informed with the latest world news only on News18. Download the News18 App to stay updated!
First Published:
June 17, 2025, 17:36 IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
17 minutes ago
- Indian Express
Delhi govt mulls bringing back private liquor vends under new excise policy
Private players could make a comeback in Delhi's liquor shops. The Delhi BJP government, which is preparing a new excise policy, is considering reintroducing private liquor shops in the Capital — just as it was in the old excise regime before 2021. The government plans to implement the new policy by July 1 with an aim to increase revenue, curb corruption and bring transparency. According to sources, the government is likely to provide licences to private players to provide a good walk-in experience for customers. 'About 100-150 private liquor shops, mostly in malls and other premium locations, are being considered. The numbers will be finalised once the policy is ready. The modalities of how to issue the licence, whether through an e-auction or e-lottery, are currently being discussed. A meeting of a high-level committee set up to prepare the policy, which is headed by the Chief Secretary, was also held on Friday. Issues such as the number of shops, licensing, etc, were discussed,' sources said. Under the pre-2021 policy, both government and private liquor shops operated in Delhi. In November 2021, the government — the AAP was in power at the time — had exited the liquor business and handed things over to private vendors, with an aim to cut down corruption. The policy soon ran into controversy and investigations by multiple agencies like the Enforcement Directorate and the Central Bureau of Investigation. In 2022, the government scrapped this policy and brought back the old excise regime — but only liquor shops run by government corporations were allowed to operate. Almost all top AAP — including former chief minister Arvind Kejriwal, AAP Rajya Sabha MP Sanjay Singh, and former deputy chief minister Manish Sisodia — were jailed in the case. Currently, a major issue facing Delhi is the unavailability of popular and good quality brands of whisky, beer, vodka, gin, and several others. 'Some popular brands are not in Delhi as their parent company was blacklisted from selling liquor in the national capital following complaints of irregularities and court cases during the implementation of the now-scrapped liquor policy… Less popular brands have entered the scene, which has pushed customers to neighbouring states… The government is planning to increase the availability of popular brands and is likely to reintroduce some that are currently not available in Delhi shops…,' said sources. Popular choices like Chivas Regal, Blenders Pride and Royal Stag, part of the Pernod Ricard brand, are not available in Delhi. Pernod Ricard India's application for an L-1 licence was rejected earlier. Benoy Babu, a regional manager at PRI, was a witness in the CBI's excise case. Babu was eventually arrested by the ED. Meanwhile, discussions on rationalising brand licence fees and retail margins are also underway, said sources, adding that excise duty and retail licensing are also likely to be increased under the new policy. 'The retail margin cap is Rs 50 for Indian-Made Foreign Liquor and Rs 100 for foreign liquor. This is on a per-bottle basis. Government-run shops have monopolised the retail business by pushing less popular brands at the range of Rs 400 to Rs 600, instead of stocking premium brands. Also, cheaper brands sell fast… Thus, discussions are on to rationalise these margins to increase revenue as well as make premium brands available for customers,' said sources. Industry sources said private retailers have started searching for properties in the city to set up shop. Currently, there are over 700 liquor shops in Delhi run by the four government corporations — Delhi Tourism and Transportation Development Corporation, Delhi State Industrial and Infrastructure Development Corporation, Delhi Consumer's Cooperative Whole-sale Store and Delhi State Civil Supplies Corporation. The Excise Department has asked the four corporations to carry out document validation online by June 30. Last week, Chief Minister Rekha Gupta said several reforms will be incorporated into the new policy, including scientific testing of liquor quality, digitisation of the sale system, curbing illegal sales, and ensuring transparency in the licensing process. The high-level committee is also studying policies implemented in Delhi earlier and those in neighbouring states.
The Hindu
30 minutes ago
- The Hindu
FATF report links dual-use cargo seized by India in 2020 to Pakistan missile agency
A dual-use equipment seized by India from a Pakistan-bound merchant vessel in 2020 is linked to Islamabad's National Development Complex, which is involved in the country's missile development programme, a new report by the Financial Action Task Force (FATF), the global anti-terror financing watchdog, has said. The report listed the case under a section on the misuse of the maritime and shipping sectors, including to transport a range of commodities, including dual-use equipment. 'In 2020, Indian Customs authorities seized an Asian-flagged ship bound for Pakistan. During an investigation, Indian authorities confirmed that documents mis-declared the shipment's dual-use items,' the FATF report said. 'Indian investigators certified the items for shipment to be 'autoclaves', which are used for sensitive high-energy materials, and for insulation and chemical coating of missile motors,' the report said. It said these sensitive items are included in dual-use export control lists of the Missile Technology Control Regime (MTCR). The bill of lading of the seized cargo provided evidence of the 'link between the importer and the National Development Complex, which is involved in the development of long-range ballistic missiles', it said. The export of equipment such as autoclaves without formal approval from various authorities is a violation of the existing law, the FATF said. Pakistan's National Development Complex (NDC) has played a crucial role in the development of Pakistan's missile programme. India seized the dual-use equipment from merchant vessel Da Cui Yun at Kandla port in Gujarat on February 3, 2020. Loopholes The report noted significant vulnerabilities in the global financial system in countering the financing of weapons of mass destruction (WMD). "Despite the grave threat posed by proliferation financing, only 16 per cent of countries assessed by the FATF and its global network have demonstrated high or substantial effectiveness" in a process that evaluates the implementation of targeted financial sanctions under the United Nations Security Council resolutions on proliferation. The report said that unless the public and private sectors urgently bolster technical compliance and effectiveness, those seeking to finance WMD proliferation will continue to exploit weaknesses in the existing controls. The report provided a detailed analysis of the evolving methods and techniques used to evade proliferation financing-related sanctions. 'Illicit actors are employing increasingly sophisticated methods to evade sanctions and circumvent export controls,' it said.
Mint
an hour ago
- Mint
Trump's ‘Two Weeks' Pause on Iran Strikes Comes With High Stakes
President Donald Trump often suggests that something will happen in 'two weeks' when he's looking to buy himself some time. But his latest two-weeks declaration — on possible US military strikes in Iran — comes with unusually high stakes. The pause, after days of bellicose rhetoric and social posts about evacuating Tehran, rattled markets in the region, triggered new threats from the Iran-backed Houthi rebels in Yemen, led Iranian officials to call the US Israel's 'partner in crime' and left Israel in a holding pattern. Because by now the world knows that Trump's 'two weeks' could mean two days, two months or never, his delay this time only fed the uncertainty. Regional equities slid on Friday, despite a sustained surge in oil prices that would typically support sentiment in Gulf economies. Israel — a US ally with particularly close ties to Trump — has been placed in a holding pattern. It launched its attacks arguing that Iran's nuclear capabilities must be neutralized. But experts say it will be hard for Israel to destroy Iran's most fortified uranium enrichment facility, the Fordow plant, without the bunker-busting bombs only the US has. The US military launched several long-range stealth B-2 bombers — the kind that could carry the 30,000-pound bombs — from Missouri over the Pacific, according to media reports, possibly positioning them in case of a strike. The Wall Street Journal cited officials saying that no order has been given to ready an operation. 'For the Israelis it does put them in a bind,' said Illan Goldenberg, a former White House and Pentagon official who worked on Iran issues. 'They'd prefer this not go on for weeks and months.' 'My guess is they have some kind of option for Fordow, but it's not as good as our option for Fordow,' said Goldenberg, a senior vice president at J Street, a liberal Israel lobbying group focused on creating a two-state solution. The Israelis 'put themselves in this limbo by launching a war and putting their faith in Donald Trump to come and finish the job.' Israeli officials told the White House in what was described as a tense phone call on Thursday that two weeks is too long to wait for Iran to reach a deal to dismantle its nuclear program, Reuters reported Saturday. Iran, meanwhile, could seek to disrupt oil shipments through the Strait of Hormuz, a chokepoint for roughly 20% of global crude flows. Even without a direct move by Tehran, nearly 1,000 vessels daily have reported GPS jamming near the narrow passage separating Iran from its Arab neighbors, according to the French naval liaison body MICA Center. The Houthis, an Iran-backed militia in Yemen, threatened on Saturday to target US vessels and battleships if the US joins Israeli attacks. The conflict started June 13 when Israel, saying it had evidence that Iran was close to achieving nuclear weapons capability, launched a series of missile attacks on Iran, which has returned missile attacks. Keeping the world guessing Trump for years has had a penchant for setting two-week deadlines, sometimes following through and at other times missing them or never acting at all, making 'within two weeks' a stock phrase for pending decisions in both his White House terms. On Friday, Trump kept the world guessing on his next steps. Speaking to reporters in New Jersey, he called himself a 'peacemaker' and dismissed the idea of sending in ground troops. He both suggested he wanted a diplomatic path and said he might support a ceasefire, but also kept a military threat alive, describing the two-week time frame as a maximum. 'I'm giving them a period of time,' he declared. Israel has pressed Trump to offer support, but in return Trump has only offered a run of tough commentary. European diplomats have stepped in to try to de-escalate tensions by talking to Iranian Foreign Minister Abbas Araghchi with little to show for it but a dismissive remark from Trump. Trump won the presidency twice promising not to get the US involved in the kinds of intractable Middle East wars he savaged his predecessors over. His most fervent MAGA supporters have been urging him publicly and privately to avoid military action in keeping with his 'America First' position. Since Israel's assault on Iran started, Israelis have faced hundreds of ballistic missiles and 1,000 drone attacks launched by Tehran. Iran has lost a slew of military officials, with more than 400 people dead and several nuclear facilities and related infrastructure destroyed or damaged. Israel, which has been waging a military campaign in Gaza since Hamas militants attacked the country on Oct. 7, 2023, may struggle to sustain a war against Tehran. The US is already working to replenish Israel's defenses as they deplete their stock of interceptors. And Israeli officials say Trump's pause means the war will last even longer. Prime Minister Benjamin Netanyahu insisted the Jewish state will 'achieve all of our objectives,' including rendering Fordow inoperable. Trump cited hopes for negotiations as part of his aim for the 'two-week' pause. But Iranians refuse to negotiate with the US while an Israeli assault continues, and the talks with European leaders appeared to make little progress. Trump expressed skepticism about those efforts Friday, saying: 'Iran doesn't want to speak to Europe. They want to speak to us. Europe is not going to be able to help them.' Yet Iran refuses to talk to the US while the Israeli assault continues. Peter Krause, a Boston College professor who specializes in Middle Eastern politics, argued that if Trump is doing 'coercive diplomacy' with Iran, then his 'hand is strengthened' the more damage Israelis do to Iran. Krause said the next two weeks will likely see a 'ramping up with more of the same militarily, but simultaneously, attempted diplomacy led by the Europeans and maybe the United States and the Turks to see if we can get an off-ramp before things get worse.' Trump has also long hurled ultimatums at opponents that he often quickly reverses as he pushes them to make concessions — as the world saw with his tariffs regime in the spring — demanding exorbitant tariffs only to back off once the trading partner arrived at the negotiating table. But taking that approach here may not work. The latest signals from the White House suggest a demand for zero uranium enrichment in Iran, a condition Tehran sees as fundamentally unacceptable. Iranian officials maintain they have no intention of pursuing nuclear weapons, but argue that some level of enrichment, under clear restrictions and oversight, is a sovereign right. Stripping that away, they contend, would amount to capitulation rather than compromise. With assistance from Ethan Bronner. This article was generated from an automated news agency feed without modifications to text.
