Demand destruction, alternate supply cushion India from oil spike

Global crude prices have stayed stable during the largest oil supply shock in decades due to demand destruction, non-Gulf supply growth, alternative export routes and strategic inventories, Kelly Xu of Alpine Macro told The Hindu BusinessLine. India's 90% import dependence was cushioned by gradual domestic fuel price adjustments and tax measures, she said, limiting inflation impact. However, prolonged conflict could erode fiscal flexibility.

A report from MCX and Vanda Insights, covered by Deccan Herald, argues India's energy security must now focus on price hedging as much as physical supplies. While India entered the West Asia crisis with about 190 million barrels in storage and diversified sources, physical resilience alone does not secure prices. The report urges deeper use of domestic commodity derivatives and disciplined hedging to manage geopolitical volatility.