The US has moved to #2 position in the importers list
There is a number of topics and themes that we cover in our discussions in the Daily Global Insights and Fireside chat programs under the PGurus platform. As it relates to India – we monitor the India–US corridor very closely, track, analyze and opine on matters.
India is the third-largest importer of crude. India imports close to 20 million tonnes of Crude annually. The volume varies predicated on demands.
One of the great deals worked out by Narendra Modi and Donald Trump at no additional transportation costs is crude – Trump negotiated this deal with India[1]. It is highly commendable that the US today has risen from the #8/ #9 position to #2.
A combination of energy and defence deals has catapulted the US as the #1 trading partner of the United States with annual bilateral trade exceeding $150 billion-plus. At that point, both nations had agreed to develop this to $500 billion as India marches towards a $5 Trillion economy. Energy/ defence/ pharma/ technology/ telecommunications were to be the underpinning vehicles of this transformation.
It’s quite gratifying to note that the US has moved to the #2 position in the importers list[3].
The United States overtook Saudi Arabia as India’s second-biggest oil supplier last month, as refiners boosted cheaper US crude purchases to record levels to offset OPEC+ (Organization of the Petroleum Exporting Countries) supply cuts, data from trade sources showed.
The switch in supplies, triggered by lower US crude demand, coincided with Saudi Arabia’s voluntary extra 1 million BPD (barrels per day) output cut on top of an agreement by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to maintain lower production.
India’s imports from the United States – the world’s top producer – rose 48% to a record 545,300 barrels per day (BPD) in February from the prior month, accounting for 14% of India’s overall imports last month, the data obtained by Reuters showed[3][4].
Note:
1. The views expressed here are those of the author and do not necessarily represent or reflect the views of PGurus.
References:
[1] A trade deal for Donald Trump: India bends backwards to please the US – Jul 24, 2020, NH
[2] U.S. becomes India’s second-biggest oil supplier, Saudi plunges to No. 4 – Mar 15, 2021, Money Control
[3] India’s oil imports reach 3-year high in Dec 2020 at 5 million bpd – Jan 20, 2021, Business Today
[4] U.S. becomes India’s second biggest oil supplier, Saudi plunges to No. 4 – Mar 16, 2021, Reuters
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I am being led to understand that a win win situation for the US and India is now in operation by this article.
Excuse me , while i scratch my head.
PGurus need to understand how asymmetrical this relationship is. Just like the U.K. unilaterally decided that Venezuela’s gold will stay with them until there is a new president who the U.K. likes, India strategic reserve in Texas is now the property of the USA if the USA doesn’t like the Indian government.
Not to mention what is written ” at no additional transportation costs”.
Ah , I see already factored in the price. The oil flows across the sea to India.
And without pollution caused on it’s way to India. !
I guess it must be shale oil which struggles to exist. From Trump’s pal.
My dear friends Rohit and Narasimha:
All international decisions have positive and negative sides. Just as US can embargo us, we can also cause difficulty with the American disputes with China. United States is going through an existential fight. The opposition is clearly defined being China and Russia along with Turkey. Their allies are Japan, India and Australia.
With some experience I can say it will become larger with South Korea, Taiwan and the littoral states of South China Sea joining in as members to be protected. When that happens (not IF) India will not be a country that can easily be ignored or discarded like Pakistan or other dictatorships that were cast away in post-World War II history.
They tried the sanctions regime after Pokharan II and they know they failed and the sanctions acted as the catalyst that has led to the present day Atmnirbhar Bharath and the make in India program. United States now does know that their unilateral control the trade and not happen in India especially in the case of differences. Unlike in the olden days they allow us to modify their weapon systems and there will be no intrusive inspections. If you read the contracts that are being signed now, you can see the difference. In the current scenario India can stand on its own. We are already out of the recession and we are zooming. If they can block or take away Indian oil, we can also hurt them. Please do not think those at the helm of affairs are fools.