UAE Offers India Free Oil To Ease Storage Woes

In an oil sector first, the oil-rich United Arab Emirates (UAE) has offered free oil to India in return for a storage deal at India’s planned underground facility as the supply glut worsens and some analysts predict that ‘’peak storage” could sending prices crashing further. The UAE’s Abu Dhabi National Oil Company (ADNOC) has agreed to store crude oil in India’s maiden strategic storage facility, sweetening the deal by saying India could take two-thirds of the oil for free. It’s a great deal for India, which is almost fully reliant on imports to meet its crude oil needs. India has lured Abu Dhabi in with the building of a massive underground storage facility system that will be able to take on 5.33 million tons of crude as a bulwark against global price shocks and supply disruptions. ADNOC is eyeing half the storage capacity at one of the new underground […]

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