India wishes its oil imports to diversify, including the resumption of supplies from Iran and Venezuela after the U.S.President-elect Joe Biden will soon take office. On Wednesday, Minister of Oil Dharmendra Pradhan said that India was a key consumer of Iranian and Venezuelan before the unilateral sanctions had been placed on the two OPEC members by Trump taking office in 2017.
“As a buyer, I would like to have more buying places. I should have more destinations to go for purchasing,” said Mr Pradhan In response to a question whether he wants the Biden administration to relax sanctions on Iran and Venezuela,India, which used to be Iran’s biggest customer after China, started buying from Tehran in May 2019 and has dramatically reduced its intake from Venezuela in recent months after Trump placed sanctions in an attempt to curtail Tehran’s purchasing.
Biden, vice-president of the 2015 nuclear agreement between Iran and six world power plants under President Barack Obama, said he wished to give Tehran a way home to diplomacy.
India is the world’s third greater oil importer and buyer. To slash import bills and save foreign exchange, India wants to diversify its imports to buy cheaper oil.
Sanctions on Iran and Venezuela have blocked up to 3 million barrels of global supplies a day (BPD) which is around 3% of the world supply
India’s Rosneft-owned Nayara Energy stopped importing from Venezuela in June this year, while Reliance Industries was allowed to continue importing oil in exchange for diesel until October as they had obtained permission from the US
However, Pradhan said that India and the United States have a close relationship. “Both depend on each other. Our relations are sound, grounded. Gone are days of monopoly. Oil Producers have to recognise aspirations of consumers,” In order to benefit Asian consumers, he also urged oil producers to work for more fair and responsible pricing.