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Mideast Constraints Test India's Crude-Supply Strategy
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With oil exports from the Middle East still severely restricted — through both the Strait of Hormuz and, now, the Red Sea — India's options for maintaining its crude supplies have gotten riskier.
It will continue to source imports of crude and LPG from the Atlantic Basin, but at more expensive rates than prewar.
India has had success managing disruptions to its crude supply this year, thanks largely to a decade-old strategy of diversifying its imports and reducing reliance on Mideast exporters.
India imports over 60% of its 32 million tons per year of LPG demand, with over 80% passing through Hormuz prewar.
The US has been able to fill only about half of the monthly supply gap left by Mideast exporters.