New chapter of India-US relation begins! First US crude oil shipment to reach India next month
 Source : NewsBharati  Date : 19-Aug-2017

New Delhi, August 19: Bilateral relations between India and United States have seen a whopping growth mainly in defence, trade etc. Noting one more chapter in a historical relation of New Delhi and Washington, the first consignment of American crude oil worth USD 100 million will reach India next month.

 

Notably, the first shipment of American crude oil worth USD 100 million will reach India next month, with US President Donald Trump promising to be a reliable, long-term supplier of energy to India's developmental needs. However, the shipment of crude oil to India comes nearly two years after the then US President Barack Obama lifted the 40-year- old ban on its export.

The consignments of American crude oil left the US shores between August 6-14 and is likely to reach Paradip (Odisha) in the last week of September. The development was also welcomed by Trump in his phone call with PM Modi on Monday, on the eve of India Independence Day.

"In his call with Prime Minister Modi on Monday, President Trump welcomed the first-ever shipment of American crude oil to India. President Trump also pledged that the United States would continue to be a reliable, long-term supplier of energy.

Soon, Indian companies started purchasing crude from the US. Two Indian oil giants, Indian Oil Corporation and Bharat Petroleum, placed orders for over four million barrels. With this India, the world's third-largest oil importer joins Asian countries like South Korea, Japan and China to buy American crude after production cuts by the Organisation of the Petroleum Exporting Countries drove up prices of Middle East heavy-sour crude, or grades with a high sulphur content.

Interestingly, during their maiden meeting on June 26, Prime Minister Narendra Modi and US President Donald Trump agreed to deepen the engagement in the energy sector.