India will buy crude oil from US for the first time
India has now turned to the US, up to now relying on the Gulf countries for energy needs. India’s largest arms provider America will now export oil to India.
India, the world’s third largest oil importer, has entered into a settlement to import oil from the US. This first consignment of oil is anticipated to reach India in October. This settlement is taken into account because of the influence of PM Modi’s current visit to America and meeting with Trump.
The public sector company Indian Oil Company (IOC) has made this settlement within a couple of weeks of PM Modi’s visit to America. Throughout PM Modi’s visit to America, President Donald Trump had stated that the US is contemplating the export of energy products to India.
IOC Director (Finance) A. K Sharma stated, “We’ve bought 2 million barrels of crude oil from North America. American Mars Crude and 4,00,000 Barrels Western Canadian are included. US Mars is a thick, excessive sulphur grade crude, which will likely be processed within the IOC’s Paradip Refinery situated in Odisha. He stated, ‘If the transport prices are added then the acquisition of American crude oil may be very cost-competitive for us. Sharma said that if the market circumstances will be beneficial for such a purchase, then the company would purchase extra crude oil from the US.
This is the first time that India has made a settlement with the US for oil. Different countries such as China and Korea are also importing crude oil from the US whereas not buying from the Gulf countries. Till two years in the past, America couldn’t sell oil to any nation apart from Canada. Up to now three years, after the massive fall in oil costs, the Obama administration eased the way to sell oil to the Asian countries to save lots of oil firms from bankruptcy.