India unlikely to face immediate energy supply concerns despite geopolitical tensions

New Delhi, July 13 (IANS) India is unlikely to face any immediate energy supply concerns despite fresh geopolitical tensions escalating in West Asia, as the country is well-positioned to meet its near-term energy requirements with adequate crude inventories and diversified sourcing, according to industry experts and reports.

The renewed tensions are likely to push up crude oil prices and increase procurement costs for September and October, according to experts.

However, they noted that India's immediate energy security remains intact as the country has already secured crude oil supplies for August and tied up liquefied petroleum gas (LPG) imports.

While some challenges could emerge in liquefied natural gas (LNG) supplies if the disruption persists, these are expected to remain manageable, they added.

Shipping through the Strait of Hormuz remained severely disrupted on Sunday, with vessel traffic slowing sharply following the latest escalation in the conflict.

Experts said the global oil market is better positioned to absorb supply shocks than during the earlier phase of the conflict, supported by higher production from non-OPEC producers and India's efforts to diversify its crude import sources.

Brent crude rose more than 4 per cent to around $80 per barrel on Monday as markets reacted to the renewed geopolitical tensions.