India gets Two Thirds of Crude Oil for Free
Crude Oil Prize in U.S. drops down at 5% on Thursday. Now the prize of crude oil in United States is $26.21 which is as lowest in the year 2003. The rate of the oil is steadily dropping down after reaching its peak of $108 on June 2014.
All the other markets also suffered by the droppings. Asia faced 4% drop in the prize on Thursday. India imports nearly 80% of the crude oil to meet its needs. We import 8% of crude oil from UAE and had imported nearly 16.11 million tonnes last year which is planned to increase further in current year.
Now the UAE National oil company Adnoc agreed to store crude oil in India’s storage making two thirds of the oil as free. India is building underground storage to store the crude oil to meet the demands when the prize fluctuates.
Underground storage is being built at Visakhapatnam, Mangalore and Padur in Karnataka to store nearly 5.5 million tonnes of crude oil. Two thirds of the total storage belongs to India and it can use whenever it needed and in emergency situation. The UAE oil company will use rest of the oil for its trading purpose. It uses India’s underground storage as its warehouse. India will also get benefited from this agreement as it can use crude oil at emergency.
At Visakhapatnam 1.33 million tones can be stored, at Padur about 2.5 million tones and at 1.5 million that meets our 10 days demand.
Last year Prime Minister Modi visited UAE and it was first time since 38 years of Indian politics. The meeting was fruitful which made two countries to be closer. The government of UAE announced to invest $75 billion in India.
Abu Dhabi crown prince and Deputy Supreme Commander of the UAE Armed Forces, General Sheikh Mohamed bin Zayed Al Nahyan is in three days visit to India. He was welcomed by our Prime Minister at Rashtrapati Bhavan.
Petroleum and Nature gas minister Dharmendra Pradhan shared about the MoU signed between UAE and India on his social media page.
Witnessed the exchange of MoUs between Hon'ble PM & H.H. Crown Prince of Abu Dhabi at Hyderabad House yesterday. pic.twitter.com/3slZPESKPH
— Dharmendra Pradhan (@dpradhanbjp) February 12, 2016