India to buy 8 mln. Iraqi oil barrels to increase strategic stock

(IraqiNews.com) It is supposed that India will import 8 million barrels of Iraqi oil to fill the first strategic oil tank, take advantage of cheap oil prices and provide support to the markets that suffer from oversupply.

Reuters stated that India’s purchases of Iraqi crude oil could temporarily help alleviate the impact of the expected pause in China’s strategic stockpiles.

The Indian Oil Ministry has issued instructions to State Refineries Corporation and Hindustan Petroleum Corporation to search for large crude carriers for the transport of Basra crude, which are expected to arrive by next May and June to carry eight million barrels.”

“The Management & Tender Committee suggested Basra crude oil because it is convenient to refineries on the east coast of India,” said the Indian Ministry of Economy.

“It will be a one-time procurement process. This amount of oil will be used as shares in the event of supply disruptions,” the ministry added.