The unrest in Iraq caused by the seizure of major cities in the country by the militant group Islamic State of Iraq and Syria (ISIS) will impact India financially but will not translate into a shortage of petroleum products. Crude oil prices have risen in response to the ongoing unrest. The price of the Indian crude oil basket was $110.54/barrel on 13 June, 2014 – up from $106.88/barrel at the beginning of the month. India imports close to 2 million barrels/day of crude oil – so a rise in prices will lead to a higher import bill.
How the continuing Iraq crisis will impact India’s economy
Amit Bhandari, energy and Environment Fellow, Gateway House has analysed the impact of the unrest in Iraq on India’s crude oil imports