As the U.S. tries a new way to protect shipping across the Persian Gulf amid tensions with Iran, it finds itself sailing into uncertain waters. For decades, the U.S. has considered the waters of the Persian Gulf as critical to its national security.
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
External affairs minister Sushma Swaraj spoke to her US counterpart Mike Pompeo on Saturday about flexibility in US sanctions on Iranian oil imports but America’s top diplomat was non-committal, people familiar with developments said.
At a time the oil market is already reeling under supply constraints and geo-political tensions, US Secretary Mike Pompeo today announced that US will not renew waivers or extend waivers granted to eight nations for importing Iranian crude oil.
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.
The United States has instructed oil trading houses and refiners around the world to further cut dealings with Venezuela or face sanctions themselves, even if the trades are not prohibited by published U.S. sanctions, three sources familiar with the matter said.
India’s shift away from coal and towards greener fuels, coupled with the decline in European coal consumption, is set to dent the export volumes of the fuel from US in the current year, according to the Institute of Energy Economics and Financial Analysis (IEEFA).
US sanctions on Venezuela’s oil industry have made winners out of Royal Dutch Shell Plc and BP Plc, Gulf of Mexico offshore heavyweights, as refiners in need of substitutes are scooping up oil produced in the region.
US set to become net exporter of oil: International Energy Agency
The United States is pressing India to stop buying Venezuelan oil that is a major source of revenue for President Nicolas Maduro’s government, Washington’s top envoy for Venezuela said, as the Trump administration this week threatened more US sanctions to cut off Maduro’s financial lifelines.