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Amid strengthening ties, first shipment of US crude oil to reach India in September

In a sign of strengthening ties between United States and India, the first shipment of US crude oil will reach India next month in September. The first shipment of US crude oil is valued at $100 million. This is part of the US commitment to strengthen engagement in the energy sector, which was discussed during the meeting between Prime Minister Narendra Modi and US President Donald Trump. The shipment of US crude oil to India has been made possible two years after the ban on export of crude oil was lifted by former US president Barack Obama. After the two countries agreed to increase co-operation in the energy sector, Indian oil companies started placing their orders for US crude oil.

Indian companies such as Indian Oil Corporation and Bharat Petroleum have placed order for more than four million barrels of crude oil from the United States. It may be recalled that India is the world’s third largest oil importer. By ordering US crude oil, India has joined the group of countries that placed similar orders in the recent past. These countries include China, South Korea and Japan. US crude has helped many countries to reduce their energy import bills. Earlier, crude oil prices had risen due to production cuts ordered by the Organization of the Petroleum Exporting Countries (OPEC). US crude oil is helping create the right balance in international crude oil prices.

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