India, which is heavily dependent on Middle Eastern oil, is looking on with increasing apprehension as the U.S. and Iran flirt with war. The country imported 84% of its crude in the last financial year
Additional sanctions imposed on Iran by the United States show that Washington’s offer of talks is not genuine, Iranian Foreign Ministry spokesman Abbas Mousavi said on Saturday.
Iranian Foreign Minister Javad Zarif’s visit to India on May 14 and his talks with Sushma Swaraj again present India with a difficult choice: Implement US sanctions against Iran by stopping the import of Iranian oil or continue to deal with Iran on the basis of international law and India’s national interests.
The world will require very little extra oil from OPEC this year as booming US output will offset falling exports from Iran and Venezuela, the International Energy Agency said on May 15.
The visit of Iran foreign minister Mohammad Javad Zarif in the context of the removal of waivers that India had enjoyed for the past six months is significant. The first item on Zarif’s agenda will of course be to discuss the modalities related to continued imports of Iranian oil
Crude oil prices hit a fresh five-month high on Tuesday after the Trump administration decided not to extend the waiver that it had granted to India and seven other countries on Iranian oil imports beyond the May 2 deadline.
Iran is likely to award up to five oil exploration and production contracts to local firms, with the first deal expected within months, a senior oil official was quoted on Monday as saying.
Iran’s oil minister said on Sunday that U.S. sanctions on Iran and Venezuela and tensions in Libya have made the supply-demand balance in the global oil market fragile, and warned of consequences for increasing pressures on Tehran.
India imported about 5 percent more oil from Iran in the last fiscal year through March as companies raised purchases ahead of U.S. sanctions against Tehran from November, preliminary tanker arrival data obtained from shipping and industry sources showed.
India has asserted that it is engaged with the Trump administration on the issue of US waiver on import of Iranian crude oil, which expires early next month.