India is seeking to diversify its oil import sources amid tough U.S. sanctions on Iran and Venezuela, two key members of the Organization of the Petroleum Exporting Countries that provides the bulk of its crude needs.
On Monday, state-run Indian Oil Corp., the country’s largest refiner and fuel retailer, announced the signing of an annual contract for the purchase of U.S. crude under which it will import three million tons of oil worth about $1.5 billion in the fiscal year beginning April.
Without naming the supplier, the company said in a statement that it was the first time that a government oil company has finalized an annual contract for the import of U.S.-origin crude oil.
India’s move is significant at a time when Iran, a key OPEC supplier, is crippled by U.S. sanctions imposed on Nov. 4 after Washington pulled out of the 2015 nuclear deal between the two. Read more
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