• UGI USER
  • Apr 16, 2024
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IRAN-ISRAEL TENSIONS MAY IMPACT INDIA’S OIL TRADE ADVERSELY.

Why in the news?

Iran-Israel conflict escalation raises concerns over oil prices, supply disruptions; India’s heavy import dependence amplifies economic impact.

source:scribd

About the Geopolitical Impact on Oil Trade:

  • Escalation in Iran-Israel conflict may elevate crude oil prices due to increased risk premiums and concerns over supply disruptions in West Asia.
  • India, as the world’s third-largest crude oil consumer heavily dependent on imports, faces economic sensitivity to oil price fluctuations.
  • Rising tensions have already caused international oil prices to surge, with potential for further volatility and prices exceeding $100 per barrel if supply disruptions occur.
About Hindustan Petroleum Corporation Ltd (HPCL):

  • HPCL is an Indian oil and gas refining company headquartered in Mumbai.
  • Established in 1974 through the merger of Esso Standard and Lube India Limited.

Corporate Status:

  • Designated as a Maharatna Public Sector Undertaking (PSU) in 2019.
  • Majority stake owned by ONGC since 2018.

Global Recognition:

  • Ranked 367th on the Fortune Global 500 list of the world’s biggest corporations in 2016.

source:

https://indianexpress.com/article/business/economy/iran-israel-conflict-escalation-could-cast-shadow-on-indias-oil-trade-9272323/#:~:text=Any%20escalation%20in%20the%20Iran,from%20the%20oil%2Drich%20region.