(PTI)
The first shipment of American crude oil is likely to reach India in the last week of September, opening new vistas in the Indo-US ties. With this India, the world’s third-largest oil importer, joins Asian countries like South Korea, Japan and China to buy American crude after production cuts by OPEC drove up prices of Middle East heavy-sour crude, or grades with a high sulphur content.
“New breakthroughs! oil shipments frm US to India has started,” the Indian Embassy in Washington tweeted on Wednesday after Indian Ambassador to the US, Navtej Sarna, handed over papers for the shipment to the Texas Governor Greg Abbott.The first lot of two million barrels costs USD 100 million, but given the volume being contemplated by Indian companies, this new development is expected to boost the bilateral oil trade to USD 2 billion.
“Opening New Vistas in India US Co-opn,” tweeted the Indian Embassy in Washington DC which also posted several pictures and a video of the event. Consignments of American crude oil left the US shores between August 6-14 and is likely to reach Paradip (Odisha) in the last week of September.
While the 40-year-old ban on export of American oil was lifted by the then US President Barack Obama in December 2015, the real move started during the maiden meeting between Prime Minister Narendra Modi and US President Donald Trump on June 26 when the two leaders agreed to deepen the engagement in the energy sector.
