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Mahesh

12/03/22 08:11 AM IST

US reaches out to Iran, Venezuela to boost oil supply

In News 

  • The US is reaching out to Venezuela and Iran to boost global crude oil supplies amid a sharp increase in prices owing to sanctions imposed on Russia following its invasion of Ukraine. 
Importance of Russia 

  • Russia is the third largest producer of crude oil, behind America and Saudi Arabia, and the second largest exporter after the Suadis.
  • Russia currently exports about 7.5 million barrels of crude oil per day. 
What US is doing? 
  • The US is currently in the process of trying to revive the 2015 Iran nuclear deal under which Tehran had agreed to limit its nuclear program in exchange for relaxations in economic sanctions that restrict oil exports.
  • Iran could potentially increase its crude oil from about 1.5 million barrels per day to 4 million barrels per day over a few months.
  • The US is also holding talks with Venezuela to ease sanctions that were imposed in 2019.
  • Venezuela has indicated that it could ramp up crude oil production if the restrictions are lifted.

India's Position 

  • Indian diplomats are also in talks with the US to permit ONGC Videsh Ltd (OVL) to allow the company to receive oil cargoes to settle loans to Venezuela’s national oil company PDVSA.
  • An OVL spokesperson said that the issue was pending with the US Office of Foreign Assets Control (OFAC) “for the waiver of sanctions to lift the debt oil cargo to realize the outstanding dividends to the tune of $412.82 million.
Source- Indian Express

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