Modi government forced Iran to offer Discount on Crude Oil !
In this video, we will discuss, how India and Iran are engaged to increase bilateral trade and cooperation.
Besides in Farzad B gas field, now India is interested in Iranian oil field also.
Reference -
http://www.firstpost.com/business/iran-offers-to-increase-freight-discount-to-boost-oil-sales-to-india-seeks-to-grab-market-share-of-rivals-saudi-arabia-iraq-4356123.html
https://in.reuters.com/article/india-iran-oil/iran-deepens-freight-discount-to-boost-oil-sales-to-india-sources-idINKCN1G10L5
Transcript -
Hello Friends, welcome to Real Quick Info channel. Lets discuss about today's topic.
Before economic sanctions, Iran used to be India's second biggest oil supplier.
We all know, in last one year India imported crude oil from America for the first time, and Increased oil import from Russia, and even started exploring oil & gas in Israeli Mediterranean waters.
Hence India is importing lesser oil from Iran. In first 10 months of this fiscal year alone, India imported 17 percent less crude oil from Iran.
Very surprisingly, One of the main reasons behind the reduction was Iran reducing the Freight discount for India from 80 Percent to 62 percent.
Please note, after the sanctions were lifted, Iran has been providing 80 percent freight discount.
As a result, the crude oil from Iran became costly for India. As a retaliation, India started looking at other sources of crude oil.
While Indian crude oil demand continue to rise, Iranian crude oil export to India is on the path of decline.
Now, With the Indian visit of Iranian president, Iran seem to have learnt the basic lessons of trade, and decided to offer 100% fright discount to India, if Indian refineries purchase more oil from Iran.
This freight discount will end up reducing cost of one barrel of crude oil by 1 Dollar.
By any standards, this is not small saving. With the help of such incentive, Indian import of Iranian crude oil is bound to increase.
Hopefully, Iran will continue to keep this trade lesson with itself. India values friendship with Iran, but we will buy crude oil at reasonable price.
if you see, Indian strategy to buy crude oil from other suppliers has delivered the result effectively. Next time on wards, Iran will think twice before trying to exploit Indians.
In business, the basic economics should play the major role. It makes sense for India to have engagement with multiple crude oil suppliers to avoid possible exploitation.
Therefore, our point is simple, we should continue the policy of buying crude oil from all suppliers, who are asking for lesser price, and offering attractive incentive for us.
In another major development, India has recently offered 6 Billion Dollar plan for Farzad B gas field development, and sought stake in Iran's South Azadegan oil field.
Since gas from Farzad B gas field is costly to India in comparison to local gas prices in Iran. This composite deal having one gas field and one oil field may improve our average return on investment.
Its very pleasing that both sides are still engaged in discussion to sort out the differences. Hopefully, The innovative ideas like composite deal will be acceptable to Iran.
In the end, the final deal has to be beneficial to both sides. Iranians may be very good at bargain, but Indians are also giving them tough time now.
As long as both sides recognize the value of bilateral relationship and remain engaged in discussion, sooner or later the solution to all complex issues can be found.
As per your views, do you think, Indian strategy to buy crude oil from America, delivered the desired result in Iran offering 100% freight discount on new crude oil purchase?
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends.
Tag
India,Iran,Iranian president in India,Indian visit of Iranian president,MOU signed during Indian visit of Iranian president,Iran offered freight discount to India,Iran offered discount on crude oil to India,India Iran relationship,Farzad B gas field,Indian development plan for Farzad B gas field,Modi meeting Iranian president,Indian buying more crude oil from Iran,Freight discount offered to Indian,Iran crude oil becomes cheaper for India,Can India get Farzad gas field
Before economic sanctions, Iran used to be India's second biggest oil supplier.
We all know, in last one year India imported crude oil from America for the first time, and Increased oil import from Russia, and even started exploring oil & gas in Israeli Mediterranean waters.
Hence India is importing lesser oil from Iran. In first 10 months of this fiscal year alone, India imported 17 percent less crude oil from Iran.
Very surprisingly, One of the main reasons behind the reduction was Iran reducing the Freight discount for India from 80 Percent to 62 percent.
Please note, after the sanctions were lifted, Iran has been providing 80 percent freight discount.
As a result, the crude oil from Iran became costly for India. As a retaliation, India started looking at other sources of crude oil.
While Indian crude oil demand continue to rise, Iranian crude oil export to India is on the path of decline.
Now, With the Indian visit of Iranian president, Iran seem to have learnt the basic lessons of trade, and decided to offer 100% fright discount to India, if Indian refineries purchase more oil from Iran.
This freight discount will end up reducing cost of one barrel of crude oil by 1 Dollar.
By any standards, this is not small saving. With the help of such incentive, Indian import of Iranian crude oil is bound to increase.
Hopefully, Iran will continue to keep this trade lesson with itself. India values friendship with Iran, but we will buy crude oil at reasonable price.
if you see, Indian strategy to buy crude oil from other suppliers has delivered the result effectively. Next time on wards, Iran will think twice before trying to exploit Indians.
In business, the basic economics should play the major role. It makes sense for India to have engagement with multiple crude oil suppliers to avoid possible exploitation.
Therefore, our point is simple, we should continue the policy of buying crude oil from all suppliers, who are asking for lesser price, and offering attractive incentive for us.
In another major development, India has recently offered 6 Billion Dollar plan for Farzad B gas field development, and sought stake in Iran's South Azadegan oil field.
Since gas from Farzad B gas field is costly to India in comparison to local gas prices in Iran. This composite deal having one gas field and one oil field may improve our average return on investment.
Its very pleasing that both sides are still engaged in discussion to sort out the differences. Hopefully, The innovative ideas like composite deal will be acceptable to Iran.
In the end, the final deal has to be beneficial to both sides. Iranians may be very good at bargain, but Indians are also giving them tough time now.
As long as both sides recognize the value of bilateral relationship and remain engaged in discussion, sooner or later the solution to all complex issues can be found.
As per your views, do you think, Indian strategy to buy crude oil from America, delivered the desired result in Iran offering 100% freight discount on new crude oil purchase?
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends.
Tag
India,Iran,Iranian president in India,Indian visit of Iranian president,MOU signed during Indian visit of Iranian president,Iran offered freight discount to India,Iran offered discount on crude oil to India,India Iran relationship,Farzad B gas field,Indian development plan for Farzad B gas field,Modi meeting Iranian president,Indian buying more crude oil from Iran,Freight discount offered to Indian,Iran crude oil becomes cheaper for India,Can India get Farzad gas field
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