Key facts
- The Philippines is seeking a long-term oil supply deal with Russia to diversify its energy sources.
- President Ferdinand R. Marcos Jr. cited the need for an 'assured lifeline' for petroleum products.
- India's refiners have sufficient crude reserves, delaying Middle Eastern oil purchases.
- India received its first LNG tanker through the Strait of Hormuz since the U.S. and Iran announced a deal.
- The LNG carrier Disha arrived at India's Dahej Port after clearing the Strait of Hormuz.
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.
India on Friday received the first LNG tanker, the Disha, that had passed through the Strait of Hormuz since the U.S. and Iran announced a deal. The vessel safely anchored at the Petronet LNG jetty. The tanker had loaded LNG from Qatar in early March, amid the Strait of Hormuz closure and Iranian missile hits on its infrastructure. Tanker owners and operators are awaiting assurances of safety before proceeding through the Strait.