Courtesy: Council on Foreign Relations
The absence of panic in the energy markets despite the renewed U.S.-Iran fighting indicates a well-supplied oil market in the longer term. That means stability for energy short countries like India in the long term. In the short term, however, India will be impacted by other disruptions, such as the increased use of sanctions.
Courtesy: KNN
The UAE’s recent exit from OPEC, and the U.S. push to sell more oil to India are markers of a new order in the oil world with demand security at a premium. As a major oil importer, India must respond to it smartly. It must develop deeper partnerships with both the UAE and U.S., and a new financial ecosystem and benchmarks for the new order.
Courtesy: AFR
The Persian Gulf conflict has already impacted India’s oil imports and financial security. However, India has not created meaningful options to protect itself from oil shocks over the last decade – and such shocks will continue. Now is the time for India to make equity investments in oil and gas companies in stable economies like the U.S., Canada and Australia, to protect itself from future energy crises.
Courtesy: Business Standard
The advent of the pro-oil Donald Trump in the U.S. and the strong pushback by developing countries to the unsatisfactory COP29 proposals, has opened opportunities for India in the energy sector. Instead of investing in overseas oil facilities, India will be better served as a financial investor in listed companies in large economies. This approach will help forge closer ties with strategic partners.