Indian Refiners Rush To Buy Iranian Oil Before It's Too Late

  • Indian Refiners Rush To Buy Iranian Oil Before It's Too Late

Indian Refiners Rush To Buy Iranian Oil Before It's Too Late

USA sanctions on oil from Venezuela and Iran have played into Russia's hands on energy policy, according to a new analysis that found that refiners have turned to Russian exports to fill the gaps, The Hill writes in an article "Europe turning to Russia for oil amid United States sanctions on Venezuela, Iran: report".

In March India's oil imports from Iran rose to about 405,000 bpd, about 56 percent higher than February, the data showed. Although not all Indian refiners continued purchases because private companies with exposure to the USA financial system were wary of secondary sanctions if they buy oil from Iran, India used up its 300,000 bpd quota allowed under the current exemption.

In the first quarter of 2019, India shipped in about 40 percent less oil from Iran at about 313,400 bpd, the data showed.

India's oil imports from Iran increased by some 5 percent between March 2018 and March 2019 compared to the previous fiscal year through March 2018, because Indian refiners rushed to buy Iranian oil before the us sanctions kicked in in November and hurried to wind up purchases ahead of the waiver expiring early next month.

India's overall imports from Iran in 2018/19 were lower than the 500,000 bpd that Iran was hoping to sell to its second-biggest oil client after China.

In the previous fiscal year that ended on March 31, 2018 Indian refiners cut purchases from Iran due to a dispute over the award of development rights of a giant gas field. As expected, the surges in Iran's oil exports came after the country's Asian buyers rushed to use the opportunity that the waivers on USA sanctions has provided.

Indian refiners Hindustan Petroleum Corp and Bharat Petroleum Corp, Mangalore Refinery and Petroleum Corp and Indian Oil Corp together lifted 1.25 million tonnes or 9 million barrels of Iranian oil in February.

India wants to keep buying Iranian oil at a level of 300,000 bpd, Indian sources said last month.