CRISIS IN THE RED SEA
Why in the News?
- Indian refiners turn to West Asia amid disruptions in US crude supply due to the Red Sea crisis.
- Preliminary data from Kpler shows no US crude received by Indian refiners in January 2024.
- Rising freight rates due to Red Sea disturbances compel Indian refiners to seek alternatives closer to home.
Source: Britannica
Impact of Crisis:
- India’s crude oil imports from Iraq reached a 21-month high in January, compensating for the absence of US crude.
- Imports from the UAE surge by nearly 81% in January compared to December levels.
- Saudi Arabia remains a key supplier despite a slight decrease in January imports.
About the Issue:
· Attacks on cargo ships by Yemen’s Houthi rebels in the Red Sea prompt major shipping lines to avoid the region. · Russian oil imports to India remain stable, with Urals crude shipments unaffected by Red Sea disruptions. About Houthi Rebels · Houthi is a Yemen-based rebel group officially known as Ansar Allah. · Aligned with Iran, they adhere to Zaidi Shia Islam. · Gained prominence in the Yemeni Civil War. · Accused of human rights abuses and involvement in regional conflicts. |