India

India is considering several options to try to secure a stable supply of oil at below-market prices amid concerns that the global oil market could remain tight and prices high in 2023, sources say. Several factors have contributed to market uncertainty recently including the possibility that China could lift all Covid-19 lockdowns, the possible return of Iranian crude exports and a proposed price cap for Russian oil. India is weighing various measures like increasing the volume of imports under term contracts, diversifying its supply sources and reaching out to Iran. India imports more than 85% of the roughly 5 million b/d of crude oil that it uses, which makes it highly vulnerable to price spikes and supply disruptions. A source said India has recently stepped up its outreach to Iran so that it would be able to start importing Iranian crude, but earlier optimism about a revival of the Iran nuclear deal and the lifting of sanctions of Iran's oil sector has faded in recent weeks. Indian refiners have been looking into procuring additional supplies from Opec suppliers like the United Arab Emirates, Gabon and Nigeria. They have also been working on broadening their supplier base via deals with non-Opec producers such as Guyana, Canada and Brazil, another source noted.