India's Iranian Oil Imports Fall After Sanctions

India's Iranian Oil Imports Fall After Sanctions

Thursday, 12 July, 2018 - 09:15
A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Gulf, Iran, July 25, 2005. REUTERS/Raheb Homavandi/File Photo
New Delhi - Asharq Al-Awsat
Indian refiners cut imports of Iranian oil last month as they started weaning their plants off crude from the country to avoid sanctions by the United States that are set to take effect in November.

India’s monthly oil imports from Iran declined to 592,800 barrels per day (bpd) in June, down 16 percent from May, according to data from industry and shipping sources.

India is the second greatest oil purchaser from Iran after China – India asked the refining companies to find alternatives for Iranian oil supplies because it might be obliged to cut down imports from Tehran in compliance with the new US sanctions.

State refiners, accounting for about 60 percent of India’s nearly 5 million bpd of refining capacity, lifted 10 percent more Iranian volumes in June compared to May, at about 454,000 bpd, the data from the sources showed. The sources declined to be identified since they are not authorized to speak to the media.

In April to June 2018, the first quarter of this fiscal year, India’s oil imports from Iran rose by about 24 percent from the previous quarter to about 647,000 bpd, the data showed.

Overall, India’s oil imports in June rose 10.1 percent from a year ago to 4.82 million bpd, the data showed. Overall purchases climbed on a higher intake of crude from Mexico, the United States and Azerbaijan. Imports from other Middle East suppliers also increased.

The Libyan National Oil Corporation announced last Monday that Libya’s production of crude oil dropped to 527,000 barrels per day from 1.28 million barrels per day in February, following the shut down of ports.

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