Sat Sep 21 10:05:36 UTC 2024: ## India to Secure Long-Term Deals for Russian Oil
**New Delhi, India** – India’s state-owned oil refiners are in talks with Russia to secure long-term supply deals, potentially as early as next April, according to sources at the Ministry of Petroleum and Natural Gas. The move comes as the volatile spot market for oil proves less attractive to state-owned refiners, leading them to seek the stability of long-term contracts.
India, heavily reliant on oil imports, currently sources much of its crude oil from Russia, its top supplier. While private refiners already have annual deals with Russia, state companies have historically preferred spot market purchases, relying on long-term agreements with Middle Eastern suppliers. However, the fluctuating prices in the spot market are pushing state refiners towards a more secure arrangement.
The long-term agreements with Russia are expected to provide India with steady access to oil at a lower price, mitigating the impact of price volatility. India dramatically increased its purchases of Russian crude oil in 2022 following the outbreak of the Ukraine conflict, taking advantage of discounted prices offered by Moscow as Western buyers shunned Russian oil. This strategy not only bolstered India’s energy security but also led to a significant surge in India’s exports of refined oil products to Europe.
Despite Western pressure to stop buying Russian oil, India has maintained its position, arguing that it is crucial to ensure global energy security. India’s Petroleum Minister Hardeep Singh Puri has stated that without Russian oil, global prices could have soared to $250-300 per barrel.
The new long-term agreements are expected to solidify India’s relationship with Russia as a major oil supplier and strengthen the country’s position in the global energy market.
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