A US-sanctioned tanker carrying Iranian crude oil has rerouted mid-voyage from its previously indicated destination of India to China, raising questions about payment issues and the future of India's Iranian oil imports.
Indian-American Congressman Raja Krishnamoorthi voted in favour of a Russia sanctions act in the US House, diverging from his Democratic party and other Indian-American lawmakers. The bill, which passed, imposes tariffs on Russian oil and gas buyers, potentially impacting India and China, and exempts US uranium purchases from Russia.
Maruti Suzuki India Ltd has launched the Wagon R, India's first flex-fuel car, capable of running on any blend of ethanol and petrol from E20 to E100, aligning with national energy security and sustainability goals.
Gwadar is viewed as a critical pearl in China's maritime strategy as it would give a permanent logistical footprint near an important choke point - the Strait of Hormuz and the oil rich Persian Gulf, explains Commodore Venugopal Menon (retd).
Top US and Chinese officials, including Vice Premier He Lifeng and Treasury Secretary Scott Bessent, held "candid, in-depth and constructive" talks in New York on economic and trade issues, with a specific focus on artificial intelligence. These discussions precede Chinese President Xi Jinping's anticipated visit to Washington and occur amidst new US sanctions targeting countries purchasing Russian oil and gas, and the US unveiling an "AI Force."
Indian benchmark equity indices, Sensex and Nifty, closed mixed on Friday. While a drop in crude oil prices offered some relief, weakness in IT stocks and several Tata Group counters, including a significant dip in Tata Chemicals and ongoing boardroom issues at Tata Sons, limited a broader market recovery.
Indian stock markets extended their gains for a second consecutive session, with the Sensex closing 736 points higher, driven by a global equity rally and a significant drop in crude oil prices following the finalisation of a peace deal between the US and Iran to end their 107-day conflict and reopen the Strait of Hormuz.
Chinese President Xi Jinping is set to visit the United States from September 23 to 25 for summit talks with US President Donald Trump, with discussions expected to cover critical economic and trade issues, including AI, and the recently signed US sanctions law targeting countries buying Russian oil and gas.
It is important to understand that the rupee's appreciation, driven by the 2013 special swap scheme, reduced India's import costs for petroleum, oil, and gold, points out Dr Ashwani Mahajan, National Co-Convenor, Swadeshi Jagaran Manch.
Petrol pump dealers seek exemption from the proposed 5 UPI charge on fuel purchases above 2,000, citing pressure on their margins.
India's wholesale price-based inflation (WPI) increased to 9.92 per cent in August, up from 9.78 per cent in July, primarily due to rising prices across food, manufactured items, and fuel and power sectors.
The Indian rupee experienced its sharpest single-day decline in eight weeks, settling at 94.83 per dollar, primarily due to escalating crude oil prices and persistent risk-off sentiment driven by heightened geopolitical tensions and limited foreign inflows.
Indian refiners are negotiating for additional crude cargoes from the US, Russia, and West Africa to ensure adequate supplies amid Middle East tensions. Refineries are maintaining normal processing rates and deferring maintenance to build reserves. The move comes as conflict impacts tanker movements through the Strait of Hormuz, a key energy transit route.
A government adviser has called for India to reintroduce a petrol variant with a lower ethanol blend, such as E10, alongside the current E20 fuel. This move aims to protect millions of older vehicles, particularly two-wheelers, which may experience performance issues and damage from the higher 20 per cent ethanol blend.
Indian benchmark indices Sensex and Nifty tumbled nearly 1 per cent for the third consecutive day, driven by a sharp spike in crude oil prices and significant selling in bank stocks, with Brent crude jumping to USD 95.27 per barrel.
The trade relationship between India and the United States has been strained by the imposition of 25% tariff by the US on Indian goods.
Any military response to a cross-border terror attack from Pakistan will have to take into account the new alignments beginning to take shape in the region, points out former foreign secretary Shyam Saran.
Economists widely anticipate the Reserve Bank of India's Monetary Policy Committee will increase the repo rate by 50 basis points, likely split between the October and December meetings, as retail inflation is projected to peak at 6.1 per cent in the third quarter, exceeding the RBI's tolerance limit.
When asked about Bessent's announcement allowing certain Russian oil sales to India and whether the US is considering any other moves, including tapping the Strategic Petroleum Reserve (SPR), Trump said, "If there were some, I would do it just to take a little of the pressure off."
One of the important topics of discussion between the two leaders is expected to be the Northern Sea Route and the Chennai-Vladivostok Maritime Corridor.
India is 80 per cent import dependent to meet its oil needs.
Indian imports of Russian crude oil may stabilise or even decline in 2024 from record 2023 levels amid shrinking discounts, lower output, and a rebound in West Asian supplies, according to the ship-tracking data and industry executives. This may impact the billions of dollars in annual savings that India made last year. Imports of Russian oil jumped by a record 140 per cent in calendar 2023 to 1.79 million barrels a day (b/d) from 740,400 b/d in 2022, when Russia marched into Ukraine in February, and from just 102,000 b/d in 2021, according to the data from Paris-based market intelligence agency Kpler.
India's edible oil imports rose by 41 per cent to touch 5.47 lakh tonnes in June against 3.88 lakh tonnes a year-ago, according to figures released by the Solvent Extractors' Association of India.
Indian benchmark indices, Sensex and Nifty, experienced a significant downturn as escalating tensions in West Asia led to a sharp surge in crude oil prices, coupled with fresh foreign fund outflows and a weakening rupee.
The United States has extended a waiver from sanctions to allow countries to buy petroleum products from Russia by a month, days after it ruled out renewal of the special measure.
A bipartisan group of US senators has introduced a comprehensive bill imposing extensive sanctions on Russia, with India identified as one of five countries that could incur tariffs for its continued purchase of Russian oil.
India, which imports over 80 per cent of its oil needs, spent $87.7 billion on importing 220.43 million tonne (MT) of crude oil in 2017-18. For 2018-19, the imports are pegged at almost 227 MT.
It, however, conceded that 20 per cent blending of ethanol with petrol leads to 3-5 per cent lower mileage in vehicles than conventional petrol, but said the blend offers a significantly higher octane rating, superior anti-knock properties, faster combustion, better pickup, smoother acceleration, and cleaner engine operation.
India's imports of crude oil from Russia touched a new high of 1.64 million barrels per day in March and is now double of the purchases from Iraq - the nation's traditional top oil supplier. But the purchases appear to have plateaued as growth has slowed. Russia continued to be the single largest supplier of crude oil, which is converted into petrol and diesel at refineries, for a sixth straight month by supplying more than one-third of all oil India imported, according to energy cargo tracker Vortexa.
Greer said that India has taken down some digital services taxes and is moving tariffs down.
Industry leaders at an AIMA panel discussion emphasised the need for businesses to quickly adapt to changing market conditions and invest in technologies like artificial intelligence to build resilience and achieve long-term growth. They highlighted the current era of uncertainty driven by geopolitical tensions, supply chain disruptions, and rapid regulatory changes, stressing that tactical responses are as crucial as long-term strategy.
The government has withdrawn most provisions of the emergency natural gas supply regulation order imposed during the West Asia conflict after liquefied natural gas (LNG) shipments through the Strait of Hormuz resumed following a ceasefire.
'Exploration should be made easier and companies should be given operational flexibility.'
A Monaco-based fuel technology company, FOWE Eco Solutions, claims its patented Cavitech fuel emulsion technology can help India reduce fuel consumption, emissions, and improve equipment performance by using water in a fuel-oil-water emulsion.
The government has no say in where the country's refiners source oil from because these are commercial transactions.
The Indian government has dismissed concerns that the use of E20 fuel could affect the validity of vehicle insurance policies, stating that the ethanol blending programme remains safe, consumer-friendly, and economically beneficial.
Indian stock markets this week will be primarily influenced by a series of corporate Q1 earnings, the evolving geopolitical situation in West Asia, and fluctuations in crude oil prices, according to market analysts.
If India does get $100 billion a year in FDI, it would be a game-changer in every possible way. FPIs would come rushing back, AI or no AI, points out Debashis Basu.
India has refuted claims of payment issues hindering crude oil imports from Iran, clarifying that refiners have the flexibility to source oil from various global suppliers. The Ministry of Petroleum and Natural Gas addressed reports of a tanker rerouting to China, emphasising standard industry practices and secured oil requirements.
Some decades are worth remembering exactly as they were, unfiltered, because that's the only way the people who survived them get to be seen at all, points out Binu Alex.
