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India likely to get Iran oil waiver
Why is it in the news ?
- India is likely to be one of eight countries which can temporarily import oil from Iran post sanctions.
- This was clarified by Secretary of State Michael Pompeo on Friday during a conference call with some members of the press.
More in the news
- The waivers are being granted in exchange for continued import cuts so as not to drive up oil prices.
- Mr. Pompeo said the list of eight “jurisdictions” will be released next week, two of which have already reached zero levels of Iranian oil imports.
- He also clarified that the European Union-which consists of 28 countries including the UK-will not be one of the jurisdictions granted a temporary exemption.
- India-for whom Iran is the third largest source of oil after Iraq and Saudi Arabia-is expecting to be on the list.
- Global benchmark Brent crude has fallen about 15 percent from over $85 a barrel last month on increasing speculation that at least some nations will get waivers, as well as signs that other OPEC members will pump more to offset any supply gap.
- The waivers are only temporary, and the U.S. will expect countries that get them to keep cutting Iranian imports in the months ahead.
Backround
- India is the second biggest buyer of Iranian oil after China.
- India is being pushed by the US to restrict its monthly purchase to15 million tonnes a year, down from 22.6 million tonnes bought in 2017-18 financial year.
- New Delhi, however, had pushed back on zero oil imports citing the adverse impact on its economy and the inflationary impact it would have.
- In September, during the Indo-US 2+2 dialogue, the US told the Indian side that it is not in Washington’s interest to damage the Indian economy.
- External Affairs minister Sushma Swaraj and Pompeo had discussed the issue of oil imports from Iran.
- During the dialogue, the Indian side had “frankly” put across their position on oil imports from Iran.
Source
The Hindu.