India hits record high levels of oil import - Fusion - WeRIndia

India hits record high levels of oil import from US

India hits record high levels of oil import from US

Due to the increase in the price of oil from Iran, India has had to look for other sources from which to import crude oil.

One of these sources has been the United States, much to their satisfaction. India has been importing more crude oil from them and less from Iran and Venezuela, which is a win for the American government.

They have been pressuring their allies to cut down their imports of Iranian goods to zero.

India’s shift to American imports hit a record in June. So far, the country’s imports from America this year have already reached almost double the total of last year.

Recently, the United States has become a major exporter of crude oil. They sent 1.76 million barrels abroad per day in April.

This year through July, the United States will send over 15 million barrels of American oil to India. In the entirety of 2017, they only sent 8 million barrels to India.

If China imposes tariffs on American oil, due to the latest tariffs from the United States, then American exports to India could go even higher.

Chinese levies on American oil could dampen Chinese purchases and decrease the price of American oil. In June, India’s monthly imports of Iranian oil dropped to 592,800 barrels per day, which is 16% less than India’s Iranian oil imports in May.

A. K. Sharma is the head of finance at Indian Oil Corporation, which is the top crude oil refiner in the country.

Sharma says that American crude oil is gaining more appeal because it has a lower cost. He also says that the low price of American oil could expand further if China cuts down its imports of American oil. Sharma added that they are looking for a mini-term deal with American exporters.

This deal would buy three to four cargoes of American oil over a period of three to six months.

Some Indian refiners have also finished their testing runs of American oil, and the country is now comfortable with a regular flow of oil from the United States.

Image credit: Image by Elise Aldram from Pixabay (Free for commercial use)

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