The Russia-Ukraine war is gradually changing the contours of the global oil economy. The imposition of sanctions by US and European Union countries on Russia has created a new space for re-alignment of global oil producers. The restrictions on Russian trade in energy sources has made major importers of crude oil like India look for new and diverse sources of crude oil suppliers, including Brazil.
Crude from Brazil
Though the quantum of Oil imports from Brazil constitutes a small fraction of India’s overall crude oil import basket, the official data available with the Brazilian government shows the quantum of Oil imports have more than doubled since FY 2019.
According to a top diplomat, the total quantum of crude oil imports from Brazil was to the tune of USD 981,781,930 in 2019 which rose to USD 1,224,302,299 in FY 2020 and then jumped more than 80% to USD 2,243,933,674 in FY 2021.
In an earlier conversation in June with Financial Express Online in San Jose, Brazil, Ambassador of India to Brazil Suresh K Reddy had said “Brazil has great oil reserves to support India’s growing demand.”
According to India’s envoy it is in India’s interest that the two countries build a long term relationship in the energy sector. Both countries have had a series of discussions and more meetings and visits are expected to take place.
Another delegation from India is expected to head to the South American nation soon.
Talks in India
After delegation-level talks between Petroleum & Natural Gas Minister, Hardeep Puri and Minister of Mines and Energy of Brazil, Bento Albuquerque, in April this year they expressed their willingness to expand bilateral trade in oil and its by-products.
At the New Delhi meeting both sides had talked about key areas of cooperation across the energy value chains. This had included intensification of two-way trade in hydrocarbons.
A joint statement issued at the end of talks between Petroleum & Natural Gas Minister, Hardeep Puri and Minister of Mines and Energy of Brazil, Bento Albuquerque, has categorically stated that the Indian side expressed keen interest for sourcing crude oil under long-term special contracts from Brazil.
The two sides during discussions recognized the importance of the big investment made by the Indian companies in the Brazilian oil and gas sector.
While encouraging further bilateral investments, both India and Brazil also reaffirmed their commitment to safeguard existing investments.
The statement states the two highlighted the importance of the bilateral trade in oil and its by-products, and both expressed their willingness to expand this mutually beneficial trade.
The post Crude imports from Brazil witness an increase, India plans to buy more appeared first on WorldNewsEra.