Pavel + 384 PP May 6, 2019 The U.S. government will not ensure sale of its oil to India at cheaper rates as the commodity is controlled by private companies, U.S. commerce secretary Wilbur Ross said on Monday. Ross is in India to participate in a trade forum. The latest U.S. sanctions against Iran has barred Asian buyers, including India, from importing oil from Tehran. Iran was shipping oil to India at discounted rates. “Oil is owned by private people so the government cannot force people to make concessionary prices,” Ross said, when asked if the United States is considering selling oil to India at a concessional rates to make for loss of Iranian barrels. 1 Quote Share this post Link to post Share on other sites
rainman + 263 May 6, 2019 India has no or very little reserves. If the world starts pinching oil now, it will collapse the economic growth model that has been lifting millions out of poverty... Looks like a bad start of sanction plan. Quote Share this post Link to post Share on other sites
pinto + 293 PZ May 6, 2019 I'm afraid that India, Russia, China, could make a decision to buy Iranian oil ?! Cheaper price, local supply ... 1 Quote Share this post Link to post Share on other sites
francoba + 93 fb May 6, 2019 India already has a port in Iran, and Iran accepts rupees and also freight shipment is cheaper. Why won't they import from Iran?? Conclusion: When the elections are over, they will continue to buy oil from Iran. 1 Quote Share this post Link to post Share on other sites
50 shades of black + 254 May 6, 2019 According to the latest official data, India imported 83.7% of the crude oil it consumed last fiscal year, the highest in many years. So, they are pretty dependent on oil imports .. 1 Quote Share this post Link to post Share on other sites
damirUSBiH + 327 DD May 6, 2019 7 minutes ago, francoba said: India already has a port in Iran, and Iran accepts rupees and also freight shipment is cheaper. Why won't they import from Iran?? Conclusion: When the elections are over, they will continue to buy oil from Iran. On other hand...Saudi Arabia is always there... 1 Quote Share this post Link to post Share on other sites
ThunderBlade + 231 TB May 6, 2019 22 minutes ago, pinto said: I'm afraid that India, Russia, China, could make a decision to buy Iranian oil ?! Cheaper price, local supply ... So, close... India and China have discussed creating an ‘oil buyers’ club’ to be able to negotiate better prices with oil exporting countries. 2 Quote Share this post Link to post Share on other sites
ceo_energemsier + 1,818 cv May 6, 2019 (edited) India and China can be in the oil buyers club, and will be able to negotiate volume prices based on the amount they buy and will buy. But to think that India is going to keep buying Iranian oil after new sanctions are imposed is a myth, India has too much tied to the US economy to risk buying Iranian barrels. Now when it is said "cheap oil" what does it mean? 30$/BBL?40$/BBL? India will buy oil on the world markets even with their oil buyers club and may see a certain amount of discount, no one is going to sell oil below prevailing prices. If India buys US crude, no one is going to offer discounts, unless they have an equity position in projects. They will be paying on NYMEX, WTI or Brent (DTD) or perhaps some form of DUbai benchmark adjusted for crude quality. If they buy on Indian benchmarks those are probably going to be slightly higher. Indian basket is .30$/bbl or more higher than Brent. Edited May 6, 2019 by ceo_energemsier errors 1 Quote Share this post Link to post Share on other sites
ceo_energemsier + 1,818 cv May 6, 2019 5 hours ago, pinto said: I'm afraid that India, Russia, China, could make a decision to buy Iranian oil ?! Cheaper price, local supply ... Russia, doesnt need to buy Iranian oil, they may do oil for food, oil for other trades to get around the sanctions. 1 Quote Share this post Link to post Share on other sites
buckskinner + 19 RW May 7, 2019 All your oil to us belong. The US is more or less taking possession of all Iranian oil, the US owns the world. The US gov has mineral rights and does own oil, the SPR is just a drop in the bucket. It is THE player in the oil trading bidness. Gotta have insurance to ship crude oil by tankers. https://www.reuters.com/article/us-iran-oil-shipping-exclusive-idUSKBN15110G All sanctions have done, the buyers disappeared in a heartbeat, is increase the price of oil and has been a benefit to US producers, the desired effect. Iran loses, America wins. A no brainer if there ever was one. Quote Share this post Link to post Share on other sites
Arjun + 39 AC May 7, 2019 18 hours ago, ceo_energemsier said: India and China can be in the oil buyers club, and will be able to negotiate volume prices based on the amount they buy and will buy. But to think that India is going to keep buying Iranian oil after new sanctions are imposed is a myth, India has too much tied to the US economy to risk buying Iranian barrels. Now when it is said "cheap oil" what does it mean? 30$/BBL?40$/BBL? India will buy oil on the world markets even with their oil buyers club and may see a certain amount of discount, no one is going to sell oil below prevailing prices. If India buys US crude, no one is going to offer discounts, unless they have an equity position in projects. They will be paying on NYMEX, WTI or Brent (DTD) or perhaps some form of DUbai benchmark adjusted for crude quality. If they buy on Indian benchmarks those are probably going to be slightly higher. Indian basket is .30$/bbl or more higher than Brent. This is a negotiating tactic, the US is playing games with India. India wanted Masood azhar branded as an international terrorist and China acted up saying they wont support it. India randomly banned tik tok, and threatened more actions against Chinese tech (ostensibly for moral purposes as tik tok was allowing Indians to disseminate x-rated content). Magically, China acquiesced and Masood Azhar is indeed an Intl, terrorist now. Tik tok is back and porn concerns are quietly dropped (until next time). India also has stringent E-commerce and data localisation guidelines on the pipeline (the length of which is dependant on political games played by the US govt). Big money controls US govt policy, Trump et al are puppets. The retail market in India right now is one of the biggest (among emerging markets) and has tremendous growth potential. China could have been the same but muh' CCP,etc. Hungry Indians waiting to pounce on the latest gadgets (reasonably priced of course) and trendy clothing and food are willing to splash their cash. Who owns many of the trendy stuff of today (aside of tik tok,etc). American companies. The Indian govt. knows this, so they are using stuff like data localisation (will shatter and splinter the internet as we know it) and E-commerce guidelines (which gnaw away at the first mover advantage of American E-commerce giants) as a leverage to gain stuff which is favorable for India. Mastercard has immediately announced that it will invest a Billion dollars in India and India will have Mastercard's first data node and hub outside of the United States. This Indian node will serve as a hub for data flow for the region (effectively nullifying the argument against data localisation by the govt. here ). All of these stringent announcements are used as political tools to gain supremacy in global trade. India is now after a few centuries in a position to bargain with the bigger dogs in this game. Quote Share this post Link to post Share on other sites
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