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At Iran’s Risk, Trump Is Winning Over Fastest Growing Oil Market


One of Iran’s biggest oil customers is buying more U.S. crude as President Donald Trump sticks to his pledge to squeeze the Persian Gulf nation’s energy trade.

State-run refiner Indian Oil Corp., which had been buying U.S. crude in the spot market, signed a term tender to purchase American oil for delivery every month between November and January, according to Finance Director Arun Kumar Sharma. That will help more than double the company’s shipments from the U.S. so far this year compared to last fiscal year.

“This tender is the first step toward future imports of U.S. crude oil through term contracts,” Sharma said in a phone interview on August 8.

A greater commitment to U.S. crude may help shield India from supply disruptions when sanctions on oil aimed at curbing the Islamic republic’s nuclear program begin in early November. It also gives American producers greater inroads to the fastest-growing oil consumer, a market that’s currently dominated by Middle-Eastern suppliers.

American oil giant Exxon Mobil Corp. is said to be courting Asian refiners with rare long-term U.S. crude export deals in a bid to expand its trading scope. Long-term contracts — which involve the sale of cargoes of a certain quality, volume and price over a set period from as little as 6 months to multiple years — for American oil are uncommon and most deals are done on a spot basis after a decades-long export ban was lifted in late 2015.

Crucial Strategy

“Long-term contracts will be central to the U.S. strategy,” said Abhishek Kumar, a senior energy analyst at Interfax Energy in London. “That ensures the U.S. will have customers for its hydrocarbons in the medium-to-long term.”

Indian Oil agreed to buy 6 million barrels of U.S. crude through the term-tender, taking its American crude purchases to 16 million barrels in total since April. That compares to its previous year’s spot purchases of 6.6 million barrels from the shale producer.

The nation’s biggest refiner said in May that it plans to nearly double its oil imports from Iran to 7 million tons during the financial year that began in April. But Trump’s push to isolate the Islamic Republic is forcing it to prepare alternative plans. Indian Oil is still awaiting direction from its government on Iranian crude imports, Sharma said.

The ratcheting up of trade tensions between the U.S. and China could also help oil buyers in India, the world’s third-biggest crude consumer, according to Interfax’s Kumar. China’s largest refiner, Sinopec, will delay making purchases from America, while Beijing has rejected Trump’s call for its allies to cut to zero purchases from Iran.

“This presents India with an opportunity to negotiate hard, given the country’s energy needs are rising and the U.S. is a more-than-willing supplier in present circumstances,” he said.


66 Comments on "At Iran’s Risk, Trump Is Winning Over Fastest Growing Oil Market"

  1. Cloggie on Fri, 10th Aug 2018 12:57 pm 

    You see how Davy operates…. he Googles “Europe collapse” and finds some nobody “Daniel Lacalle” (who?) and posts it as if this were the truth carved in stone.

    You’re transparant as glass, meathead.

  2. Davy on Fri, 10th Aug 2018 1:14 pm 

    sorry nederliar, all I did was go to Zerohedge stupid. The article is legit and your Europe has another big friggin mess on its plate. OOPs, there goes that golden decade neder has been singing about.

  3. GregT on Fri, 10th Aug 2018 1:48 pm 

    Guys, please stop feeding the troll.

    It cannot be reasoned with, and will only continue to drag this entire forum down to it’s own level.

  4. Davy on Fri, 10th Aug 2018 2:35 pm 

    greygoar, what have you said today? Nothing! but trolling noises. What a hypocrite. The same can be said about your gang member boney juan. He had one comment then trolling. You intellectually weak individuals are irrelevant because you don’t contribute useful knowledge you just make troll grunts and Facebook social media between the gang. You guys love to talk to each other and attack those you don’t like.

  5. GregT on Fri, 10th Aug 2018 2:58 pm 

    Do not feed the troll.

  6. Cloggie on Mon, 13th Aug 2018 5:47 am 

    Erdogan latest: talking negatively about the Turkish economy is punishable by law:

    @Antius – Turkey is not yet a Russian client state, or SCO client rather, but it is seriously flirting with ithat possibility.

    The God-Emperor is doing everything to push Turkey over the brink. Trump, the great demolition ball of the West = US empire. And he made Davy vote for it.ROFL

  7. Davy on Mon, 13th Aug 2018 6:21 am 

    Poor neder, he does not know how to deal with this Turkish contagion news. He was just trying to figure out Italy and now this. Europe’s banking system is toast.

  8. Antius on Mon, 13th Aug 2018 6:30 am 

    Can you imagine a situation in which China offers to bail Turkey out, in exchange for a naval base in the eastern Mediterranean? Stranger things have happened!

  9. makati1 on Mon, 13th Aug 2018 6:58 am 

    Antius, I can see that possibility. China has billions from US interest payments to spend on real things of value like ports, railroads, military bases, oil fields, etc. Over $25,000,000,000.00 per year. Plus some Billions in trade surplus.

    Since they know that the USD is losing value daily, they spend it asap, just like anyone with intelligence would do. I don’t hold US dollars a minute longer than necessary.

  10. Cloggie on Mon, 13th Aug 2018 7:23 am 

    Wait for it:

    Article written by a Goldman, no doubt someone with dna-level interest in geopolitics.

  11. Cloggie on Mon, 13th Aug 2018 7:36 am 

    “Europe’s banking system is toast.”

    Keep hoping, you zionist tool and despicable traitor of your own blood.

    The truth is that Turkey is toast and will become a Chinese vassal. The West go yet a bit smaller and that is good news.

  12. Davy! on Mon, 13th Aug 2018 7:45 am 

    Any idea what a Chinese bailout of Turkey would look like? We are talking billions. We are talking both debt and liquidity. Do you think China can afford this while it is facing its won credit crunch? China did some bail out work on Venezuela and look how that turned out. At least Venezuela had oil to trade and even now that is turning out bad for China. What would a naval base in Turkey do for China? It might help cement the belt road initiative on the western end but it would be far cheaper to use Syria and less complicated. Erdogan want carte blanche freedom of financial and political movement with low costs IOW cake and eat it mentality. We are now into the phase of paying for that mentality and it will be ugly for the region including Europe, Russia, and Syria. Erdogan wants nationalistic pride to prevail. Don’t you think allowing China bases would be an act of humiliation on a certain level? At least the NATO bases in Turkey were part of a decade old alliance. I am not saying this won’t happen just look at the whole picture. Erdogan is walking a tight rope of nationalistic pride and social instability. Something will give eventually.

  13. Davy!! on Mon, 13th Aug 2018 7:49 am 

    Slip slidin, which is it? I think you are getting confused again senile old man. Are you talking about the Yen or the Yuan? Do you mean the cheapest in a good or bad way? If the dollar is losing value daily then isn’t it getting cheaper? Are you confused slip slidin?

    “Since they know that the USD is losing value daily, they spend it asap,”
    “For the first time in almost 20 years, cash is an alternative to risk assets. The yen is probably the cheapest currency there is today. Cash should be held in yen.” I’m holding…lol China fail? Not likely.”

  14. Antius on Mon, 13th Aug 2018 7:52 am 

    Davy, all true. In any event, Russian military presence is more likely than Chinese.

  15. Cloggie on Mon, 13th Aug 2018 8:17 am

    More down to earth assessment.

    The EU will remain the most important economic partner, but China is expected to gain new influence. No naval base but participations in Turkish ports, ventures.

  16. Davy on Mon, 13th Aug 2018 8:36 am 

    I don’t see how Russian military presence is likely? Russia is in Syria with bases why Turkey? I see the situation developing more like a deal already in the works with regional cooperation. Turkey has a large modern Army that could crush Russia in a Syria if they chose. They don’t need Russian protection. Russia does not have aid to give to Turkey because Russia is not economically placed to do that. Russia has its own currency and debt issues. Russia is a fellow EM nation. Russia’s situation has greatly improved since Putin made his self reliance efforts but Russia is not a China.

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