Iraq replaced Saudi Arabia in August as the top oil supplier to India

By: Middle East Affairs

Data from industry and shipping sources showed that Iraq replaced Saudi Arabia in August as the top oil supplier to India, as refiners turned to Iraqi barrels to compensate for a lower intake of Iranian oil ahead of U.S. sanctions in November.

It should be noted that the United States is reimposing sanctions on Iran following Washington’s choice in May to pull back from a 2015 universal arrangement went for controling Tehran’s atomic program. While a few approvals were actualized from Aug. 6, those influencing Iran’s oil division produce results just from Nov. 4.

Imports of Iranian oil by India, Tehran’s best oil customer after China, fell by about a third to around 523,000 bpd in August from July as state-refiners eased back buys because of a postponement in anchoring government endorsement to utilize Iranian boats.

Regardless of the lower buys, Iran remained the third greatest oil provider to India in August, the information appeared.

Washington will consider waivers for Iranian oil purchasers, for example, India yet they should inevitably stop imports as approvals are forced on Tehran, U.S. Secretary of State Mike Pompeo said last Thursday.

Iraq and Saudi Arabia kept on being the two greatest oil providers to India a month ago, the tanker entry information got from sources appeared. The sources declined to be recognized.

India refiners delivered in 1.02 million barrels for each day (bpd) of Iraqi Basra oil in August, an expansion of around 46 percent from the earlier month, while imports from Saudi Arabia declined 5 percent to around 747,000 bpd amid the period, the information appeared.

India imported less Nigerian oil in August as the west African country’s yield was hit by blackouts in a few noteworthy streams, for example, Bonny Light and Tornados. Additionally, Asian purchasers selected to take light sweet U.S. oil as opposed to Nigerian.

Moreover, India’s imports of U.S. oil in August rose to a record 275,000 bpd, representing around 6 percent of its general buys.

On the other hand, India refiners had booked U.S. oil cargoes in June when rebates between U.S. unrefined future and Brent was sufficiently wide to make arbitrage financial matters achievable for India.

The data showed that India’s month to month oil imports from Nigeria declined by around 34 percent to around 279,000 bpd.

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