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China and India, two of the largest oil importers in the world and the world's largest demand growth centers, are on the cusp of creating a club of oil buyers to have their say. in pricing and supply of crude oil as part of the OPEC cuts and US sanctions against Iran and Venezuela, Indian media livemint out, citing three officials aware of talks.
This is not the first time that the two major oil importers are working towards the creation of such an oil club.
India and China have discussed the creation of an "oil buyers club" in order to negotiate better prices with oil exporting countries and will seek to import more US crude oil to reduce the influence of OPEC, both in the global oil market and on prices, The Indian Ministry of Petroleum said in June 2018.
"The agreement of oil producers, OPEC, upsetting prices, India has discussed with China the possibility of forming a" oil buyers club "able to negotiate better terms with sellers and to get more US crude oil to reduce the dominance of the oil bloc ", a tweet The Ministry of Oil's Twitter account said in the middle of last year that oil prices were rising before US sanctions came back on the Iranian oil industry.
According to officials quoted by livemint, China and India have exchanged high-level visits several times since then and made progress in the area of "joint crude oil supply". Spouse: Massive decline in US oil rigs fails to stop price slide
Reports of increased cooperation between China and India for the eventual establishment of an oil buyers' club come at a time when US sanctions exemptions for all Iranian oil customers expire this week.
China is Iran's largest customer, while India is Iran's second largest oil buyer. The end of the US derogations will therefore mainly affect the refiners of these two oil importers who will seek to obtain crude oil from other sources or risk being bought from the United States secondary sanctions.
"China and India should do the same to increase their bargaining power to make oil prices more sustainable," Srikanth Kondapalli, a professor at Jawaharlal Nehru University, told the Global Times in a recent interview. mentioning the benefits of a buyers' club.
By Tsvetana Paraskova for Oilprice.com
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