• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 6 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 3 hours Coal Boom in Asia is Real and a Long Trend
  • 3 hours The Plastics Problem
  • 9 hours China's President Xi To Visit North Korea This Week
  • 1 hour GM Considering Electric Hummer
  • 12 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 15 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 15 hours Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 hours Forbes: Giant Floating Solar Farms Could Extract CO2 From Seawater, Producing Methanol Fuel.
  • 5 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 3 hours Hydrogen FTW... Some Day
  • 13 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 17 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 8 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
The Calm After The Storm In Oil Markets

The Calm After The Storm In Oil Markets

The rapid drop in crude…

U.S. Works To Ensure Alternative Oil Supply To India

India refinery

The United States is working with oil producers like Saudi Arabia and the United Arab Emirates (UAE) to ensure India has enough crude supply after the end of all sanction waivers for Iranian buyers, but the U.S. can’t ensure its own oil will be sold to India at preferential prices, American officials said on Monday.  

The U.S. is working with its allies in OPEC—Saudi Arabia and the UAE—to make sure that India has sufficient supplies after the American sanction waivers expired last week, according to the U.S. Ambassador to India, Kenneth Juster, as quoted by Indian media today.

India has been Iran’s second-largest oil customer after China and has been buying Iranian oil at discount rates as Iran was offering very attractive terms to Indian buyers, including almost free shipping and an extended credit period for payment.

India’s oil imports from Iran increased by some 5 percent between March 2018 and March 2019 compared to the previous fiscal year through March 2018, because Indian refiners rushed to buy Iranian oil before the U.S. sanctions kicked in in November and hurried to wind up purchases ahead of the waiver’s end last week.

According to Indian outlet NDTV, Iran supplied more than one tenth of India’s crude oil demand in the fiscal year ended March 2019.

The end of the U.S. sanction waivers will hit India hard because it has to pay more for alternate oil supplies at a time when the country is in the middle of elections and higher gasoline and diesel prices will not sit well with any voter.

Related: This World-Class Shale Frontier Just Opened Up

Last week, reports emerged that India had asked the United States if it would be flexible in allowing it to continue importing Iranian oil despite the end of the sanction waivers.

While the U.S. is working with the Saudis and emirates to ensure Indian supply, America can’t guarantee attractive discount prices to Indian buyers, U.S. Secretary of Commerce Wilbur Ross said in New Delhi on Monday.

Asked if the U.S. would consider selling its crude to India at discount rates to offset the expected shortfall in Iranian supply, Ross said, as carried by Reuters: “Oil is owned by private people so the government cannot force people to make concessionary prices.”   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News