In a first, UAE to store 6 million barrels of oil in India

Oil Minister Dharmendra Pradhan in UAE said that the two countries have signed a seven-year agreement for strategic storage.

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New Delhi: Union Minister Dharmendra Pradhan on Saturday said a strategic agreement has been signed with UAE according to which the country will store six million barrels of oil in India.

Pradhan, who is currently in the UAE, said a seven-year agreement has been signed between the two countries which would enable oil to be stored safely in India. "Leaders of both nations have decided to strengthen their strategic partnership. For the first time, UAE has decided to store 6 million barrels of oil in strategic storage. Such engagement is taking our relations to a new height," he told news agency ANI. "This is a 7-year agreement. It is in the interest of both the nations. UAE will make a presence in Indian markets and the oil will be stored safely in our nation."

India is a major importer of oil and it reached record levels at 4.4 million barrels a day in 2017. Shaky international crude prices in recent months have led to petrol and diesel prices in the country reaching record highs while the current US-Iran standoff over the nuclear deal does not promise a bright future either. As such, experts say India ought to be widening its horizons instead of depending much on any one country for its oil needs.

The latest deal between India and UAE though is only for strategic storage.