Red Sea Crisis: The war between Israel and Palestine has started affecting the trade in the Red Sea. At 8 am on Monday morning, a rise of 0.38% was seen in the prices of WTI CRUDE. After this the price reached $78.31. At the same time, there was a jump of 0.35 percent in the prices of BRENT CRUDE OIL, after which the price reached $ 83.84 per barrel. It is being told that Iran-backed militants carried out separate attacks targeting a tanker in the Red Sea. Seven only, 3 American soldiers have been killed in Jordan. The reason for this is the possibility of oil prices going on fire. Here, Hindustan Petroleum Corporation Limited (HPCL) Chairman Pushp Kumar Joshi said that the attacks on cargo ships by Houthi rebels in the Red Sea have not affected the supply of crude oil in India. However, the cost of freight transportation has increased due to the diversion to the relatively longer ‘Cape of Good Hope’ route, he said.
Oil comes from Russia via the Red Sea
India, the third largest oil importer, supplies oil from Russia through the Red Sea route. Last year, Russian supplies accounted for more than 35 percent of India’s total crude oil imports, which stood at 1.7 million barrels per day. Russian ships and cargo are not currently the main targets of attacks. However, ships taking the route around the southern tip of Africa instead of via the Suez Canal and the Red Sea are requiring longer voyages, leading to shortages and increased freight costs. In an interaction with investors after the results of the third quarter (October-December, 2023) of the current financial year, Joshi said that HPCL has fixed the supply of crude oil till mid-April and it does not see any disruption in the supply. Has been. He said that HPCL fulfills 44-45 percent of its crude oil needs through agreements with national companies of Saudi Arabia and Iraq.
Expenses may increase up to 600 percent
Ajay Sahay, Director General of Indian Exporters Organization FIEO, expressed concern over the increase in freight traffic. He said that this is a serious issue and this problem will harm the global demand for goods besides increasing inflation in various countries. Ajay Sahay said that at some places freight rates have increased by 600 percent. In such a situation, we request to develop Indian shipping line with global reputation. FIEO Director General said that we had paid more than 80 billion dollars as transport service charges in 2021. With the country’s exports moving towards the target of one trillion dollars, our freight payments will reach 200 billion dollars by the year 2030. If Indian shipping lines have 25 percent stake in this, then $50 billion can be saved.
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