Iraq entered into oil deals worth 1.4 billion dollars with India in his favor

Thursday, December 24, 2015

Trade sources revealed that Iraq concluded deals worth $ 1.4 billion to export about 160 thousand barrels per day of crude oil to two oil refineries in India, to the race rages between oil exporters to boost market shares in Asia's largest consuming region of the ore in the world.
Asia consumes half the world's oil and become the focus of a price war among producers who offer deep discounts to attract buyers amid increased global supply glut and slowing demand and falling prices. And enhance the recent deals entered into by Iraq, the second largest oil producer in the Organization of Petroleum Exporting position, the third largest supplier of crude to Asia and constitute a win-win situation for the country, which is making great efforts to increase oil production and to achieve much-needed revenue. Virendra Chauhan said the Energy Ospetks oil analyst in Singapore "India is of strategic importance, of course, it will remain the fastest growing economy in the world in 2016". The source familiar with the government of Iraq's oil marketing company SOMO and signed an agreement with Reliance Andsthrs] major refining own companies in India for the supply of 100 thousand barrels per day of Basra crude heavy in 2016 and about 60 thousand barrels per day for the Indian Oil Corporation. The deals come within 6 months of the launch of Basra heavy crude, which indicates that Iraq is quick to strengthen its share in the Asian market before the establishment of Iran pump more supplies and entry into the race immediately after the lifting of Western sanctions imposed on it. Chauhan said, "is bound to intensify the battle with the return of Iranian oil in the second half of 2016". The deals also show the growing importance of India as a consumer of oil. Iran is also looking to conclude deals with Indian refiners to boost oil sales. Doubled and Indian demand for oil during the last five years to more than 4 million barrels per day and the country's consumption will continue to rise with economic growth of more than 7 percent annually. India meets about 80 percent of its oil needs through imports, one of Iraq's largest customers.