The Philippines is pursuing a permanent oil supply agreement with Russia to diversify its energy sources and mitigate risks associated with Middle Eastern supply routes, according to President Ferdinand R. Marcos Jr. This comes as India delays Middle Eastern oil imports despite the Strait of Hormuz reopening.
The Philippines' move to secure long-term Russian oil supply highlights a broader trend of energy diversification amid geopolitical instability, while India's cautious approach to Middle Eastern imports underscores ongoing supply chain concerns and the impact on energy import costs.
The Philippines is pursuing a long-term oil supply agreement with Russia to diversify its energy sources and mitigate risks associated with Middle Eastern supply routes, according to President Ferdinand R. Marcos Jr. The nation has been significantly impacted by the current oil supply crisis and has turned to Russia for ad-hoc supplies.
Marcos indicated that while no firm agreements have been made, there is an understanding to develop the relationship initiated in response to the Middle East conflict. The Philippines aims to establish another "assured lifeline" for petroleum products. Before the recent conflict, the country imported 98% of its oil from the Middle East.
Meanwhile, Indian refiners are not rushing to resume purchases of Middle Eastern crude oil, even with the Strait of Hormuz reopening, due to sufficient existing reserves. Sources indicate that while Middle Eastern producers are seeking to restart long-term contracts, Indian buyers are hesitant and awaiting government approval for tanker loadings. This cautious approach comes after India became more vulnerable to disruptions in the Strait of Hormuz, leading refiners to increase reliance on Russian oil. Despite alternative sources, India's overall energy import bill saw a significant jump of nearly 82% year-on-year in May, reaching $18.7 billion, as crude oil imports rose 7.5% and LNG imports increased by 16% from the previous month.