In comparison to May, the refiners of Indian origin have ordered about 12 percent less Iranian Oil in the month of June as U.S. stated that it would reintroduce sanctions on Iran. However, the sales are 50 percent higher than a year ago. After China, Indian refiners are the top oil client of Iran. They are trying to weaning themselves away as the U.S. pulled out of the 2015 nuclear deal.
On August 6, the first set of sanctions will take place followed by 180 day winding down period in the petroleum sector, which will end on Nov. 4. Oil Minister DharmendraPradhan stated in the lower house of parliament that refiners in India have bought around 664,000 barrels per day (bpd) of Iranian oil in June.
They have represented a fall from the previous month with higher purchases as compare to year ago.Pradhan also stated, “Indian refineries imported 1.9 million tonnes of crude oil from Iran in June 2017 and placed orders for 2.82 million tonnes in June 2018.”
Due to a row over the development rights of a giant gas field, India’s state-refiners, have approximately 60 percent of the nation’s overall 5 million bpd capacity, curbed Iranian imports in 2017/18.
After Iran offered free shipping and an extended credit period of 60 days, the state refiners raised imports in the current fiscal year starting in April. To the Indian stated refiners, Iran became the second biggest oil supplier after Iraq in the April to June period. However, India has warned about a drastic cut in imports from the OPEC member.
In the month of April to June 2018, India loaded about 715,600 bpd oil from Tehran. This is almost a growth of about 45 percent from the previous quarter, as the data shown in parliament. According to the tanker arrival data, there is decline of about 16 percent in the monthly oil imports of India from Iran. However, Iran has now offered to insure oil cargoes to India after some insurers stopped providing the service in the face of the impending sanctions.
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