India gets first-ever U.S. crude shipment

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Mains Paper 2: IR | Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

From UPSC perspective, the following things are important:

Prelims level: Not Much

Mains level: Import of crude oil from the Us is important because of the risks arising out of geo-political disruptions.(for example, happened in case of Iran)


News

U.S. crude oil 

  1. India has received the first ever shipment of U.S. crude oil of 1.6 million barrels, purchased by state-run Indian Oil Corporation (IOC)

Particulars of the deals

  1. The shipment is a part of recent commitments to purchase U.S. oil by IOC, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL)
  2. IOC has placed a cumulative order for 3.9 million barrels from the U.S.
  3. While BPCL and Hindustan Petroleum have placed orders for about 2.95 million barrels and one million barrels, respectively

Why is this important?

  1. The inclusion of the U.S. as a source for crude oil imports by India’s largest refiner will go a long way in mitigating the risks arising out of geo-political disruptions
  2. According to a. U.S. Embassy, U.S. crude oil shipments to India have the potential to boost bilateral trade by up to $2 billion
Foreign Policy Watch: India-United States
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