By John Q. Hosedrinker 
India is strategically diversifying its crude oil imports, with purchases from Angola playing a key role in reducing reliance on Russian oil amidst international pressure. This deal highlights Angola, a significant African oil exporter, as a vital supplier offering high-quality crude, particularly the Hungo and Clove grades, favored by Asian refiners. The shift follows stricter sanctions on Russian oil, causing India’s imports of Russian crude to plummet while increasing supplies from OPEC members. This move aligns with India’s efforts to strengthen trade relationships with the United States and the EU.
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India buys 7 million barrels of crude from Angola as it cuts Russian oil to appease the EU and US, a move that is making waves in the global energy market. It’s a significant purchase, but let’s put it in perspective: India consumes approximately 5.6 million barrels of oil *per day*. So, those 7 million barrels from Angola represent roughly a 30-hour supply. That’s a drop in the bucket when considering India’s massive energy needs.
Now, one might wonder, if India is reducing its reliance on Russian oil to appease the West, why the purchase? Well, some industry insiders argue that this is less about geopolitical pressure and more about building relationships, particularly with African nations like Angola. Strengthening ties with Angola can offer diversification in oil supply. This diversification strategy helps India navigate the complex web of global trade and geopolitical pressures, allowing it to balance its relationships with the EU, the US, and other nations.
Considering the volume of oil India consumes daily, this deal by itself doesn’t fundamentally shift India’s energy landscape. It may be part of a larger strategy but alone it’s not a major blow to Russian oil sales or a massive win for the West. And here’s a potential side effect: Angola, to meet the sudden surge in demand, might need to replenish its supplies, potentially turning to… Russia. That’s right; the global oil market can be quite intricate, and it’s not always a straightforward win or loss situation.
The presence of figures like Mark Carney visiting India at the same time is not a coincidence. This could signal deeper conversations about the future of energy and global economics. Oil is a major topic on the table.
Cutting off Russia from the world economy is a goal many in the West are striving for. BRICS nations have other mechanisms to buy Russian oil, and the situation with Reliance seems to be an interesting angle. Most of the other Indian companies have already moved away from Russian oil, which has become a complex issue that affects India’s international relations.
Some sources have stated that India is paying a price for a single company’s profits, which is understandable considering the geopolitical climate. The war is still ongoing, and there’s a good chance that middleman countries, like India, could be incentivized to prolong it so they can profit from the sanctions. In turn, all sides need to get to their end goals in due time.
The reality is that India is not a middleman in this particular transaction; it is the end consumer. Buying oil from a country like Angola, which also has its own issues with corruption, doesn’t sit well with everyone, but it reflects a complex global situation.
The idea that this deal is merely to appease the EU or the US seems like an oversimplification. While it aligns with the overall trend of reducing reliance on Russian oil, the volume suggests other factors are at play. If there’s any appeasement happening, it’s more likely targeted at the EU. The US has complex relationships and nuances in dealing with India.
The potential for this deal to influence the war in Ukraine or the ongoing global economic order is a complicated subject. The sanctions on Russia and the shifts in oil supply create new opportunities for some countries.
Ultimately, this purchase from Angola reveals the complex dance India is doing on the global stage, a dance of energy security, geopolitical maneuvering, and economic opportunity. India is not only balancing its own energy needs, but it’s also shaping its relationships with key global players.