In view of upcoming economic sanctions against Iran on trade with it the America has started export of petro crude to India so that sanctions may not affect the India adversely. So far India is importing most of crude highest from Saudi Arabia, Iraq and Iran.
The economic sanctions initiated by the America are endorsed by the Russia, Saudi Arabia and the United Nations. India it being a UN sanction will comply with it. In the last US sanction India reduced the oil imports from Iran but continue to purchase bulk of it. Both India and Iran for oil trade entered into an agreement to deal in rupee payment for half of it and half in US dollar.
Iran is also offering India three months credit in payment and bears the tanker ship transportation charges. India and Iran are the partner in the development of seaport of Chabahar. The Chabahar seaport is developed by India and it provides many very important benefits.
So far India and Afghanistan were carrying out trade through Pakistan. But with the emergence of Chabahar the Pakistan is bypassed and India and Afghanistan now having direct trade. Iran has asked India that economic sanction should not affect the development work of Chabahar and it should also not curtail the oil import from Iran, because it will spoil Indo-Iranian relation for all time to come.
The US has become a major crude exporter of India sending 1.76 million barrels per day in April. It crude supply to India hit a record in June to replace supply from Iran and Venezuela, US is trying that all nations to cut imports from Iran to zero by November.
The America has said that it will send more than 15 million barrels of US crude to India this year starting from this month of July. The US oil exports could go higher if China imposes levies on oil imports on their ongoing trade war imposing high import tariff on each others imports and exports.
The US oil is gaining appeal with the Indian refiners because of its low cost. The Arab world a higher worried by US move to sell crude oil at low cost. Beside Iran it will definitely affect the oil business of all the oil producing countries of Arab world. Now Russia is also started selling its crude oil.
India is maintaining crude oil imports from Russia and Venezuela on its strategy that oil links must be maintained with outside the Arab world also. Because off and on there are political turmoil in the Arab nations here or there. The terrorism is accumulate in the Arab world.