Why India Is Moving Closer To Iranian Oil?
Iran is relentlessly trying to sell its oil production to whoever is willing to buy, irrespective of how the US has strong-armed it by levying sanctions. In a secret way to get its business going, Tehran has transported a record amount of oil to China, reports have confirmed.
It is also tapping into Asian clients to ensure it can keep selling its liquid gold. Reports have also confirmed that some key Indian players are already in talks with Iran to freeze import deals for 2021. Tehran has moved some 17.8 million tonnes of crude into China during the past 14 months. Volumes reportedly reached record levels in January and February 2021.
India’s state refiners have also confirmed having added Iranian oil to their annual import. This has been done on assumptions that under Biden’s leadership, the sanctions might ease on Iran after all.
Sanctions levied on Iran were a way to strong-arm the largest exporter of oil after the Middle East bloc, by the Trump administration. It had crippled the Iranian economy while it fought the onslaught of the pandemic too.
According to some government officials, restored Iranian supplies to India could lower demand for spot cargoes that have risen recently after Iraq cut supplies and Kuwait reduced the duration of some contracts. India, hurting from the sustained recovery in prices, expects Iranian supplies to return to the market in 3-4 months.
From the sound of how things have been going with the Biden takeover, there might be bleak chances of America withdrawing its sanctions unless Iran can come on a level playing ground over the nuclear deal.
Also, with India shaking hands with Iran on this second occasion, it might not go well with America, which has already shown some clemency with New Delhi, when they entered into a porting deal with Iran, just to weaken Chinese control over the world.