The trade war between China and the United States is not on its way to slowing down. The worlds two most powerful economies are busy slapping tariffs on each other. However, the trade war may get India a cheaper supplier of crude oil.
China is the biggest buyer of gas and crude oil in Asia, but its biggest trading house has seized to buy crude from the U.S. and Bejing wants to impose tariffs on the U.S. crude and liquified natural gas. This war has resulted into buying Iranian oil, keeping Tehran still in play in the global market. Moreover, it has a significant impact on Iran’s sanctions on India’s oil sourcing. According to vessel-tracking and port data compiled by Thomson Reuters Oil Research and Forecasts, India has booked almost 10 billion barrels, 319,000 barrels per day (bpd) of crude oil from the U.S.
India Enjoys The Bargaining
The demand for 319,000 bpd is just a glance at the amount of India’s import from the U.S. In fact, this demand is almost triple the 119,000 bpd India’s import. This will be fulfilled over the course of seven months. The industry player estimate that India may enjoy this bargain. The country can use this to argue with the U.S. to waiver sanctions as India will be the biggest buyer-after South Korea-of the American’s oil.
As reported by Times of India, India is the world’s third-largest crude oil importer. If India cuts the deals with Iran, the U.S. will be the major beneficiary as it will put America and Saudi Arabia in a position of power against Tehran. Thus, the increasing tension is nothing but helpful for India to get best oil deal from the U.S. Besides the benefits of being side by side with America, India may get cheaper oil supplies from either Iran or the U.S.