The Silicon Review ^Asia

India’s Ministry of Petroleum and Natural Gas has made an announcement that major oil suppliers around the world will provide extra oil barrels to India. The move will compensate for the loss of Iranian oil due to sanctions. The announcement was made public on Tuesday.

The new demand by America states that nations should stop purchasing Iranian oil by Next month or face sanctions. People familiar with the matter said India is fully equipped to fulfill the people’s demand over petrol, diesel, and other petroleum products.

According to Reuter’s report, in order to hedge against Iranian oil loss, refiners in India are purchasing more oil. The oil suppliers include the U.S., Mexico and other nations of Petroleum Exporting Countries (OPEC).

Indian refiners are the world’s third biggest importer and the largest buyer of oil from Iran after China. But since the sanctions came into effect in November last year, India only purchased half of what it did earlier.

During that America granted a waiver from sanctions for a period of six months to the nations which are the major buyers of oil from Iran including India. The sanction was called significant reduction exceptions (SRE).

On Monday, Saudi Arabia, the world’s biggest oil provider said that it would communicate with other oil producers to balance the crude oil supply across the globe.

It could be a challenging task for oil producers across the globe including India to cope up with the Sanctions.

The sources are referred from Reuters.