The American diplomat\u2019s planned visit to a refinery comes amid a global diesel shortage and President Trump\u2019s sanctions waiver on Russian oil<\/p>\n
US Secretary of State Marco Rubio will meet Indian Foreign Minister\u00a0Subrahmanyam Jaishankar in Mumbai on Tuesday and visit a major oil refinery in western India the next day\u00a0as he makes his second visit to the country this year.\u00a0
\nWashington\u2019s top diplomat is leaving New Delhi out of his itinerary and is focusing instead on diesel supplies and business deals as high fuel prices weigh on the prospects of US President Donald Trump\u2019s Republican Party ahead of November\u2019s midterm elections.
\nRubio is scheduled to visit the Jamnagar refining complex of Indian conglomerate Reliance Industries on Wednesday, where he is expected to meet with its billionaire owner Mukesh Ambani.
\nThe Trump administration is emphasizing business deals over policy and politics as American voters focus on the economy, experts told CNBC.
\nWhy Jamnagar has become important for US
\nReliance, India\u2019s largest private company, operates the world\u2019s biggest single-site refining complex at Jamnagar \u2013 in Prime Minister Narendra Modi\u2019s Gujarat state \u2013 which is capable of processing around 1.4 million barrels of crude a day.
\nThe facility\u2019s importance as a major supplier of refined fuels globally has increased as disruptions in the Middle East and Russia squeeze diesel supplies, with ripple effects on US markets.\u00a0
\nUS diesel prices averaged $6.29 a gallon in September, according to the Energy Information Administration. The International Energy Agency has warned that global shortages could persist into 2027.
\nReliance has cranked up increased exports amid the crunch. Its diesel shipments to Europe reached around 4-5 million barrels in July, a ten-month high, while exports to Brazil also rose, Reuters reported.
\nAny additional Indian diesel flowing to global markets would help ease diesel prices and explain Rubio\u2019s trip to Jamnagar.\u00a0<\/p>\n
Read more<\/p>\n
India nears deal to operate two Venezuelan oil blocks<\/p>\n
Reliance, long a major buyer of Russian crude, has increasingly turned to Venezuela after receiving US authorization to purchase oil directly from the South American country earlier this year.
\nJamnagar, unlike many other refineries in India, can process Venezuela\u2019s heavy crude. Venezuelan deliveries scheduled for India could more than double to around 465,000 barrels a day in October, according to ship-tracking firm Kpler. All of those listed Sikka, the port serving Jamnagar, as their destination, Bloomberg reported.\u00a0
\nTrump has also waived key sanctions and tariff provisions under a new law targeting the Russian energy trade, potentially making more Russian crude available to refiners. Rubio said that Washington was assessing the economic impact of further restrictions, including on countries dependent on Russian oil such as India.
\nAmbani has invested in Trump\u2019s dream
\nRubio\u2019s meeting with Ambani is significant for another reason.\u00a0
\nReliance is backing a proposed refinery in Brownsville, Texas, designed to process American shale oil. The planned facility would handle 168,000 barrels a day, with the company agreeing to purchase the output under a 20-year arrangement, Reuters reported.
\nThe developer has described it as the first new US refinery in half a century. It will be designed designed for American shale oil. The full investment and construction costs remain undisclosed.
\nThe refinery is key to bringing to the US consumer the benefits of Trump\u2019s efforts \u2013 under the political slogan \u201cdrill, baby, drill\u201d \u2013 to increase domestic fossil fuel production.
\nThe project also adds another strand to the economic ties between New Delhi and Washington, even as both countries inch toward closing a bilateral trade deal following months of negotiations.\u00a0
\nThe deal\u2019s first phase has entered legal drafting, Indian Commerce Minister Piyush Goyal said last week.
\nWashington and New Delhi are \u201cvery close\u201d to finalizing the deal, Rubio said Monday, adding that trade negotiations were among the factors considered in Washington\u2019s sanctions decisions.<\/p>\n
Neeta Ambani, Mukesh Ambani,Anant Ambani and Isha Ambani attend the IPL opening celebration in Mumbai, India. (FILE PHOTO)<\/p>\n
\u00a9\u00a0 Prodip Guha\/Getty Images <\/p>\n
Trillionaire vs. billionaire
\nRubio\u2019s expected meeting with Ambani comes on the heels of Elon Musk\u2019s public outbursts attributing\u00a0delays to the launch of his Starlink satellite internet service in India to the Indian billionaire.
\nMusk, who has Trump\u2019s ears, accused powerful business interests of obstructing Starlink\u2019s entry and even blamed Ambani for the delay, referring to him as \u201cPrime Minister Ambani\u201d in a X post.
\nReliance, whose telecommunications business Jio serves more than 530 million customers in India, has denied blocking competition. It has welcomed Starlink and pointed out that its own satellite venture was awaiting New Delhi\u2019s security clearance.
\nIndia has also denied favoring domestic companies in the approval process. Musk subsequently acknowledged Reliance\u2019s response, saying, \u201cMuch appreciated.\u201d<\/p>\n
Read more<\/p>\n
India won\u2019t give special favors to Starlink despite Musk\u2019s jabs \u2013 media<\/p>\n
Rubio cannot avoid politics
\nRubio\u2019s decision to hold talks in Mumbai rather than New Delhi has drawn criticism from India\u2019s opposition Congress party.
\nOpposition leader Rahul Gandhi snarked that Rubio \u201csummoned his employee to Mumbai,\u201d while senior Congress leader Jairam Ramesh questioned why the American ambassador announced details of Jaishankar\u2019s schedule.
\nIn the US, six Democratic lawmakers urged Rubio to raise concerns over the detention of anti-government protesters in New Delhi and the alleged use of excessive force. Their October 16 letter also sought an investigation into reports that Indian diplomatic missions monitored protesters in the US.
\nMeetings with foreign dignitaries outside the capital are not unusual, India\u2019s Foreign Ministry pointed out, citing previous engagements in several cities. It confirmed that Rubio and Jaishankar would discuss energy, trade, investment, defense, and emerging technologies.
\nThe Trump administration prioritizes business over politics, and it may well be that the global energy situation \u2013 and a billionaire \u2013 have placed New Delhi in a sweet spot to benefit from that.<\/p>\n","protected":false},"excerpt":{"rendered":"
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