First US crude oil shipment to reach India next month

Washington, August 17

The first shipment of American crude oil worth $100 million will reach India next month, with US President Donald Trump promising to be a “reliable, long-term supplier” of energy to India’s development needs.

The shipment of crude oil to India comes nearly two years after the then US president Barack Obama lifted the 40-year-old ban on its exports.

During their maiden meeting on June 26, Prime Minister Narendra Modi and US President Donald Trump agreed to deepen the engagement in the energy sector.

Soon, Indian companies started purchasing crude from the US. Two Indian oil giants, Indian Oil Corporation and Bharat Petroleum, placed orders for over four million barrels.

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 the Organisation of the Petroleum Exporting Countries drove up prices of Middle-East heavy-sour crude, or grades with a high sulphur content.

“New breakthroughs! oil shipments from US to India has started,” the Indian Embassy in Washington tweeted yesterday after Indian Ambassador to the US Navtej Sarna handed over papers for the shipment to Texas Governor Greg Abbott.

The first lot of two million barrels costs $100 million, but given the volume being contemplated by Indian companies, this new development is expected to boost the bilateral oil trade to $2 billion.

“Opening New Vistas in India US cooperation,” tweeted the Indian Embassy which also posted several pictures and a video of the event.

Consignments of American crude oil left the US shores between August 6 and August 14 and are likely to reach Paradip (Odisha) in the last week of September. — PTI