India has stepped up diplomatic initiatives with top oil producers as rising US-Iran tension has pushed up crude prices and may raise freight and insurance costs. While tension has been rising for a year since the US decided to re-impose sanctions on Iran, recent attacks on oil cargoes in the Gulf region and downing of a US drone by the Islamic Republic has magnified the anxiety.
In just a fortnight, oil minister Dharmendra Pradhan has spoken to US energy secretary Rick Perry, Russia’s deputy prime minister Yury P Trutnev, UAE minister Sultan Ahmed Al Jaber, and Saudi energy minister Khalid Al-Falih to discuss the geopolitical situation and its effect on oil prices.
He sought their help in keeping prices at a reasonable level. For India, which imports 84% of its oil needs, any supply disruption or a price flare can be damaging. Oil gained 5% in a week on US-Iran conflict. Read More