Sina Azodi: I think that the same buyers that legally bought Iranian oil will continue their purchases, but since it is the “grey market” they will demand discounts from Iran. They especially include China and India.
India and China could team up to form an oil buyers’ bloc as a counter to the US move to sanction countries that continue to import oil from Iran; this will have a significant impact on the oil trade globally, according to Indian energy analysts.
Although sanctions against Venezuelan crude are yet to come into effect, the country’s oil has essentially already been taken off the mainstream international market after the US State Department piled direct pressure on foreign companies to scrap all oil-related deals.
India has reduced the amount of oil imported from Iran, but does not intend to abandon the purchases completely, Indian Ambassador in Russia Bala Venkatesh Varma said Tuesday.
Several Indian firms have already stopped importing oil from Venezuela after the US reportedly instructed oil refineries around the world to curtail their dealings with Caracas or face sanctions themselves.
Saudi Energy Minister Khalid Falih said that the draft of an OPEC-non-OPEC indefinite cooperation charter is expected to be presented in the next two weeks. Sputnik discussed the OPEC-non-OPEC cooperation charter with Rajiv Biswas, Asia-Pacific chief economist at IHS Markit.
US oil exports will negatively affect the price of oil in the world market and the price will range between $60 and $80 over the next one-and-a-half years, Rice Energy and Environment Initiative at Rice University Executive Director Sergio Kapusta told Sputnik on Friday.
India is continuing talks with the US in a bid to ensure the extension of exemptions from Washington’s sanctions targeting countries importing Iranian oil, the Indian Petroleum secretary has told Sputnik.
US National Security Adviser John Bolton has warned countries, including India, against buying Venezuelan oil, saying nations and firms that support President Nicolas Maduro’s “theft” will “not be forgotten”.
India increased imports of crude oil from Venezuela to almost double the average quantity in the first half of this month as per data compiled by Bloomberg.