English Financial Times, Reuters, March 10 report, after the United States granted India a temporary exemption to purchase Russian oil, India quickly expanded its procurement scale. Market data shows that India has purchased about 20 million barrels of Russian crude oil. Analysts expect that during this exemption period, India may accumulate between 20 million and 30 million barrels of oil. Previously, the U.S. announced that it would allow India to import Russian oil that was loaded before March 5th, and provided a one-month procurement window. After the policy was introduced, Indian refining companies quickly increased their procurement efforts to alleviate current energy supply pressure. India is one of the world's largest crude oil importers, with about 90% of its oil and gas demand relying on imports, of which about 40% of the imported energy needs to be transported through the Strait of Hormuz. However, as the Middle East conflict escalates, shipping through the strait has nearly come to a standstill, leading to a sharp rise in international oil prices. The price of Brent crude oil once surged to $119 per barrel. Rising energy prices have begun to impact India's domestic market. The stock price of India's largest refining company, Indian Oil, has declined by about 15% cumulatively. Analysts believe that the U.S.'s temporary exemption for India to purchase Russian oil is more of a tactical arrangement to avoid short-term market chaos, and does not fundamentally alleviate the energy supply risks facing India, nor will it have a substantive impact on the global oil supply structure. Currently, India's strategic crude oil reserves can meet about eight weeks of domestic demand. Using reserve oil can give the government some time to adjust policies. However, if the tension in the Middle East continues, high energy prices will still pose long-term pressure on India's economy.
Original: toutiao.com/article/1859376111652940/
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