{"id":"f-445134d771-cad14a86-5e65-5a78-be3b-145514008e76","title":"Why India Could Be Hit Hardest If Middle East Conflict Drags On — China Has Six Months of Oil, New Delhi Far Less","description":"A prolonged Middle East conflict could hit India hardest due to low oil reserves and heavy import dependence, as Strait of Hormuz disruption drives crude prices higher and strains global energy markets.","timestamp":1772515091,"category":"national_v_two","headline":"Why India Could Be Hit Hardest If Middle East Conflict Drags On — China Has Six Months of Oil, New Delhi Far Less","modifiedHeadline":"Middle East War: India's Oil Supplies at Risk","subCategories":["scid_b6669955"],"subcategoriesName":["National"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"389","fcSummary":"the middle east conflict poses a significant risk to india, which relies heavily on the region for crude oil imports and has comparatively low inventories. while china holds reserves for six months, india's cover only 20-25 days. rising fuel prices and potential supply disruptions are concerns, prompting india to seek alternative sources and government intervention to ensure affordability. the strait of hormuz closure impacts global oil flows.","summary":"Middle East conflict risks India's energy security. Low reserves & import reliance leave it vulnerable as oil prices surge.","ctaUrl":"https://trends.glance.com/newz/news/IN/en/timesnow/f-445134d771-cad14a86-5e65-5a78-be3b-145514008e76","sourceUrl":"https://www.timesnownews.com/business-economy/economy/why-india-could-be-hit-hardest-if-middle-east-conflict-drags-on-china-has-six-months-of-oil-new-delhi-far-less-article-153739674","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/JAYdgiT40WH0.webp","content":"

The conflict in the Middle East, if prolonged, could hurt India the most, as its inventories are much lower compared to its peer China. According to Ajay

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Parmar, director of energy and refining at ICIS, a commodities research group, China has at least six months' crude oil inventories in case the supply from the Middle East is hit amid Iran tensions. The region is one of the main sources of crude oil supplies, and as of January, India imported 55% of its crude supplies, at about 2.74 million barrels per day, a Reuters report said. \"China has at least six months’ worth of crude supplies in storage. Indian inventories are much lower though, and so (it) is much more vulnerable in this situation,\" Ajay Parmar told Reuters. Israel Iran War Live Updates For India, the conflict in the Middle East has come at a time when it is more dependent on crude supplies than ever, as the United States sanctions on Russian oil make it even more difficult for New Delhi to secure its energy needs. The risks facing two of Asia’s largest economies show how wide the impact of the Israeli and US strikes on Iran could be. The attacks have sparked a regional conflict and effectively closed the Strait of Hormuz - a crucial shipping route through which about a fifth of the world’s oil passes. Global benchmark Brent crude rose by around 7% on Monday, and if the war continues for a long time, fuel prices could climb even higher. Read More: Iran Closes Strait Of Hormuz, IRGC Warns Ship Will Be Set On Fire Amid Surging Oil Prices Oil Minister Hardeep Singh Puri last month said that India has enough crude and fuel to last about 74 days, however, refining sources told Reuters that New Delhi's current inventories cover only about 20 to 25 days.

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What Are India's Options?

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\nA possible supply squeeze could push India to look for oil from other sources. The federal oil ministry said in a post on X on Monday that the country would take all necessary steps to make sure fuel remains available at affordable prices.\n
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\nThe White House and the Office of Foreign Assets Control did not immediately respond to requests for comment on whether the US would assure India that it could resume buying Russian oil without facing the re-imposition of 25% US tariffs on imports.\n
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\nSecretary of State Marco Rubio said the Departments of Treasury and Energy would announce action on Tuesday to help ease rising energy prices.\n
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\nAsia buys nearly 90% of the Middle East’s oil exports. Japan and South Korea rely heavily on the region, sourcing about 95% and 70% of their oil from the Middle East respectively. However, both countries hold much larger reserves than India and China.\n
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\nJapan’s oil reserves are equal to 254 days of consumption. A South Korean government official said on Monday that the country’s stockpiles could cover about 208 days.\n
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Broader Global Risks

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\nEurope and the United States are not major buyers of Middle Eastern crude. However, analysts say they would still feel the impact of a prolonged disruption to oil flows through the Strait of Hormuz in the form of higher global prices.\n
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\n\"If we see a prolonged war, with the Strait out of use for an extended period, it would mean all countries globally competing for every incremental barrel of oil possible,\" said Parmar.\n
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\nMatt Smith, an analyst at Kpler, said Europe could face difficulties securing jet fuel because the Middle East Gulf \"accounts for around 45% of (Europe’s) waterborne jet fuel imports,\" he said.\n
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\nThe United States has reduced its oil imports from the Middle East in recent years as it has become the world’s largest oil and gas producer. According to US data, it bought less than 900,000 barrels per day from Gulf countries last year.\n
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\nA US official said Washington is not currently considering releasing oil from the Strategic Petroleum Reserve. However, previous administrations have used the reserve during times of war.\n

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Why India Could Be Hit Hardest If Middle East Conflict Drags On — China Has Six Months of Oil, New Delhi Far Less

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