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Indo-US oil pact, first ever Crude arrives Paradip, Monday

Updated: Dec 23, 2019


The first ever US shipment is expected to arrive India on Monday, when a very large crude carrier (VLCC) docks at Paradip port at its eastern State Odisha. This historic step marks implementation of a new Indo-US relationship. Earlier Crude provider to the nation, OPEC nations, increased earlier signed pacts to curb Oil production thereby leading to increase in Crude and Brent Oil. The Crude pact with the US is considered as more cost effective for India with increased oil consumption predictions by the nation. In 2017 India surpassed China as the largest consumer of Oil.

The Indian Oil Corporation Ltd (BSE 0.69 %) placed its first order in July and the second order on August 10. Bharat Petroleum Corp made its first purchase of US oil, buying high Sulphur crudes Mars and Poseidon. BPCL has bought a cargo containing 500,000 barrels each of Mars and Poseidon for delivery from September 26 to October 10. Hindustan Petroleum (BSE 2.75 %) Corp Ltd (HPCL BSE 2.75 %) is also looking at buying US crude oil.

With the distributed Vendor model from OPEC to US, hopefully Oil and related products will see price reduction, helping inflation stability. Another positive move by the new Governments.

#Oil