Crude Supply Stable for India, but $100 Oil May Hurt: Experts

Amid the ongoing conflict in the Middle East and rising crude oil prices, energy experts have said that oil supply through the Strait of Hormuz is unlikely to be immediately affected, though risks remain if tensions escalate further.

- TBG NETWORK

Industry experts, in conversations with The Economic Times, stated that the situation in the region remains tense after the recent US action against Iran, but the general hope is that oil supply routes will stay open. MK Surana, former chairman of Hindustan Petroleum Corporation Limited (HPCL), said, “India has done well to diversify its supply sources in the last few years, and our dependency on the Straits of Hormuz and supply from the Middle East is lesser now than what it was earlier. But any disruption in the Straits and Middle East supply will definitely affect crude oil prices globally. Therefore, for India, pricing is a bigger concern than the availability.”