The temporary reprieve on seven countries including India will be soon terminated by US.
The US had granted exemptions to China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey ‘to ensure a well-supplied oil market’ in November last year for
India will need to come up with options that offer terms as attractive as those offered by Iran. The Islamic Republic had become a preferred supplier for India, making it the second largest Iranian crude oil purchaser of Iranian oil after China due to sweeteners such as 60-day credit, free insurance and shipping.six months after it reimposed sanctions on the Persian Gulf nation.
Post the news reports, Brent crude and US West Texas Intermediate (WTI) futures have seen an upswing with Brent hitting $72.93 a barrel and WTI touching $64.86 a barrel.
The cost of the Indian basket of crude, which represents the average of Oman, Dubai and Brent crude, was $69.58 a barrel on 17 April, according to the Petroleum Planning and Analysis Cell. The cost of the Indian basket of crude registered an average of $66.74 in March. International crude oil prices had reached a record high of $147 per barrel in July 2009.
The impending move to end waivers comes in the backdrop of the Organization of the Petroleum Exporting Countries (Opec), which accounts for about 40% of global production continuing with the supply cuts and the US administration imposing sanctions on Venezuela’s state-owned oil company Petrуleos de Venezuela SA (PDVSA).