Iran Becomes India’s Second biggest Oil Supplier, Replaces Saudi Arabia

Iran becomes India’s second biggest Oil Supplier:

  • Between April 2018 and June 2018, Iran was the second-biggest crude oil supplier to Indian state refiners
  • It replaced Saudi Arabia as the second-biggest oil supplier to Indian state refiners.

How did Iran become becomes india’s second biggest Oil Supplier in this period?

Iran Becomes India's second biggest Oil Supplier

  • Thanks to the steeper discounts offered by Iran on the oil, India almost doubled its imports from Iran between April 2018 and June 2018.
  • It offered almost free shipping and extended credit period on oil sales.

Who is India’s biggest Oil supplier?

  • Iraq is India’s biggest Oil Supplier
  • Saudi Arabia is the third biggest Oil Supplier of India

Future concerns with respect to India’s oil imports from Iran

  • United States in May 2018 withdrew from a 2005 nuclear deal with Tehran and decided to reimpose sanctions on Iran
  • India and other major buyers of Iranian oil are under pressure from United States to cut imports from the Iran
  • The first set of sanctions will take effect on August 6 2018 and the rest, notably in the petroleum sector, following a 180-day “wind-down period” ending on Nov. 4
  • India has asked refiners to prepare for drastic reductions or even zero Iranian oil imports.

Related Facts: What is OPEC and who are its members?

  • OPEC is a permanent, intergovernmental Organization whose objective is to co-ordinate and unify petroleum policies among Member Countries
  • The Organization of the Petroleum Exporting Countries (OPEC) was created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
  • OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965.
  • Currently there are 11 Members of OPEC: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.

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