Iran top oil importer turns to Iraq
In a move that has both commercial and strategic implications, India is looking to increase its oil imports from Iraq even as it continues to reduce its dependence on Iran oil.
With Iraq increasing production and the crude being the same as that of Iran, it can be an easy substitute for Iran, which is under a squeeze of sanctions from the US and European Union for its nuclear programme.
The energy ties will be top among the agenda of external affairs minister Salman Khurshid's visit to Iraq on June 19 and 20.
The visit also takes place a month ahead of India-US strategic dialogue in New Delhi at the foreign ministers' level.
There has been a substantial dip in Iran's contribution to the total crude import of the country. According to latest official statistics, in the year 2012-13 (ending March), India's import dipped by over 26.5% to 13.3 million tonnes, compared to 18.1 million tonnes the year before.
Also in 2012-13, Iranian supplies accounted for 7.2% of India's oil imports, down from 10.5% in the previous year. "There are issues related to payments as well as the insurance issues faced by oil refineries due to the sanction (in Iran). That's why the import is down," a government official said. Published by HT Syndication with permission from Hindustan Times.
For any query with respect to this article or any other content requirement, please contact Editor at firstname.lastname@example.org
- King Abdullah's death and the 'fear premium' in Saudi oil markets
- Mixed signals: why King Abdullah's passing could not have come at a worse time for Saudi's oil sector
- Cheap oil: the antithesis of clean energy?
- Incentivized cooperation: will the oil price slide get the US to negotiate with OPEC?
- Saudi Arabia and UAE can last a while: why there isn't really an end in sight to the oil price plunge