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?
- 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.