TIL Desk/Business/New Delhi/ With India keen on diversifying its crude oil sourcing at competitive rates, domestic companies have opened up to the US spot market. According to officials, orders worth $600 million have already been placed by the Indian companies so far, which is likely to increase by nearly $2 billion in the near future.
This is also seen as a move in line with the Trump administration’s policy to reduce the US trade deficit. India’s exports to the US stand at $72 billion, while it imports come to around $30 billion.
Officials said India also faces an advantage of buying the US crude at least $2 a barrel cheaper than that supplied by the Organisation of the Petroleum Exporting Countries (Opec). Experts said that proximity to India still makes the West Asia a favourable source than the US, as unless fuel is swapped, the transportation cost is a huge burden.
“We have already contracted 7.85 million barrels of crude oil, for an overall contract worth about $450 million, from the US market. In fact, US crude oil imports have the potential to increase bilateral trade by at least $2 billion,” said an official close to the development.
