The world’s third-largest oil importer—India will begin to import crude oil from the United State for the first time. This is after the Indian Prime Minister: Narendra Modi’s visit to the United States in June, as the U.S. President: Donald Trump said that the United States is looking forward to exporting more energy products to India.
In addition, this business agreement began to occur after the Indian Oil Corp bought a cargo that is ought to be delivered in October. The Indian Oil Corp bought 1.6 million barrels of heavy and high-sulfur grade Mars crude, with the additional 400,000 barrels of Western Canadian Select that will be delivered in October.
In accordance to this, the Indian Oil Corp had to achieve special permission from the shipping ministry to purchase the cargo on a delivered basis as local regulations favor the use of Indian flagged carriers for imports.
A.K. Sharma, Indian Oil Corp’s head of finance said that the cargo was valued on a delivered ex-ship basis, which is very competitive to that of Basra Light. He also added that: as long as the prices remain competitive, the Indian Oil Corp will continue to buy more crude from the United States.