India, China join hands on oil, On Monday 6 May 2019

India and China are working closely on general trade concerns, including oil and gas purchase cooperation amid the backdrop of the United States being forced to pass taxes and sanctions on Iran's oil imports. Direct knowledge of the matter

Efforts made by the world's second largest and third oil importers to find common points and energy cooperation are one of the key areas that both parties can negotiate for better manufacturers.

After visiting New Delhi in March, Li Fanrong, deputy head of the National Energy Administration of China, both sides created a working group on oil and gas. This is the first institutional arrangement between the two parties to cooperate on energy, although they have many groups on issues such as anti-terrorism and border disputes.

"The meeting between the Minister of Petroleum and Natural Gas MM Kutty and the Chinese national energy minister, Li Fanrong, was held on March 26 in New Delhi to discuss cooperation in the oil and gas sector." One government official said.

People familiar with the idea in the official quarter in Beijing said "Both sides are talking closely." Cooperation in key areas such as oil purchases He confirmed that these problems were considered in a meeting between Kutty and Li in March.

Energy cooperation for a period of time - Kutty traveled to China last October. But the issue received attention from the United States that announced the abolition of sanctions on Iranian oil imports last month.

Iranian officials said Iran is an important country for energy security in India and China because it is one of the two largest crude suppliers in both countries and supply disruptions due to US sanctions. Of anonymity

The economic benefits of India and China are also threatened by the announcement of Trump executives to terminate special agreements with India under the Generalized System of Preferences (GSP) program and increase import taxes from 10% to 25% for Chinese products worth $ 200,000,000,000, New Delhi and Beijing are approaching to counter the trade barriers created by the United States, which pose a threat to Asia's major economies.

Among the issues that India and China are able to do together are "Asian insurance premiums" charged by the Organization of Petroleum Exporting Countries (OPEC), officials said. India is also concerned about the impact of US sanctions that began on May 2 and cut supplies from Iran, which account for more than 10% of the country's oil demand and the need to control prices.

This new deal is a major change when India and China often compete against each other to buy shares in oil and gas fields in Asia and Africa. Their cooperation in energy is limited, and India is looking for opportunities to allow South Korea and Japan to join a group of buyers to create a group of buyers.

People familiar with the development of both sides said that the cooperation was in line with the "Wuhan spirit", referring to an informal summit last year between Prime Minister Narendra Modi and President Xi Jinping, who reset bilateral relations after a lone soldier. Doklam 2017. They also point to the transformation of Beijing on the list of terrorists Masood Azhar in Pakistan.

Although India raised the issue of flexibility in sanctions against Iran, oil But the United States is not the offender On Monday, US Commerce Minister Wilbur Ross said his country would not guarantee cheaper oil sales to India because commodities were controlled by private companies.

"Oil is privately owned, so the government cannot force people to make concession prices," Ross here, to participate in the trade forum, told reporters.

However, US Ambassador Kenneth Juster said his country is working with other manufacturers, such as Saudi Arabia, to ensure that "Sufficient oil supply"

Although India has turned to alternative suppliers such as Saudi Arabia, United Arab Emirates and Kuwait to compensate for the loss of Iran, supplies from these sources are likely not as cheap as Iranian oil because Tehran is credited. 60 days and cover transportation, insurance