Now Reading: Russian oil not India’s big risk, $100 crude is
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Russian oil not India’s big risk, $100 crude is
The US Senate passed a bill that could impose tariffs of up to 100 per cent on nations buying Russian crude, including India. But Anindya Banerjee of Kotak Securities says the impact…
The Story in Brief
The US Senate passed a bill that could impose tariffs of up to 100 per cent on nations buying Russian crude, including India. But Anindya Banerjee of Kotak Securities says the impact on India's economy will be minimal. He notes that Russian oil discounts have shrunk from $15-20 a barrel in 2022 to just $2-3 now, saving India only $2-3 billion a year against a $150 billion import bill.
The real threat, Banerjee argues, is a global crude spike above $100 a barrel. Every $10 jump adds $15 billion to India's annual oil bill. India now sources crude from over 40 countries and has 80-85 days of import cover, close to the G7 benchmark. Payment systems like rupee Vostro accounts and UAE dirham settlements are being built to bypass dollar-based obstacles.
The Indian Opinion
The narrative that US sanctions on Russian oil will cripple India is exaggerated. The real risk has always been global oil prices, not supplier switches. Focus should shift to how India hedges against a $100-plus crude scenario. Watch for the next OPEC+ decision and India's strategic reserve fill rate, those numbers will reveal true vulnerability far more than any tariff threat.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
