Indian state-owned oil refiners have two months of hydrocarbon reserves and are in no hurry to sign new contracts for oil supplies from the Persian Gulf, The Economic Times reported, citing its sources.
The companies have not yet decided on their plans for future oil purchases in the Middle East, in case the Strait of Hormuz reopens to shipping, and have not yet responded to requests from Middle Eastern exporters, including the National Oil Company of the United Arab Emirates, to resume buying agreed quantities of oil under long-term supply agreements.
Against this backdrop, the Indian government has refrained from announcing a timeframe for sending Indian-flagged tankers to the Strait of Hormuz after receiving of security guarantees.
According to the analytical company Kpler, since the outbreak of the war between the US and Iran in February, India's oil imports from the Persian Gulf countries have fallen to their lowest level since at least 2013. Due to uncertainty about the continued compliance of the US and Iran with the ceasefire agreement in the bilateral conflict, it remains more profitable for India to source oil at reduced prices from Russia and South American countries.