Iran’s Oil Exports to India Grew in 2016

Iran’s Oil Exports to India Grew in 2016

India’s annual oil imports from Iran surged to a record high in 2016 as some refiners resumed purchases after the lifting of sanctions against Tehran, Reuters reported.

The sharp increase propelled Iran, with 473,000b/d, into fourth place among India’s suppliers in 2016, up from seventh position in 2015. It used to be India’s second-biggest supplier before sanctions, informed The Economic Times. This was up from 208,300b/d in 2015 according to ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts. In 2015 refiners slowed purchases due to sanctions which choked payment routes, insurance and halved Iran’s exports.

Indian refiners Reliance Industries, Hindustan Petroleum, Bharat Petroleum and HPCL-Mittal Energy Ltd (HMEL) resumed imports from Tehran in 2016, attracted by the discount offered by Iran. Moreover, In April-December, the first nine months of this fiscal year, Iranian supplies to India averaged a record 530,300b/d, up from about 400,000b/d before sanctions tightened against Tehran.

Rising imports from Iran and Iraq lifted the Middle Eastern share in India’s crude diet to 64% in 2016, reversing a declines in recent years, partly due to rising prices for Atlantic Basin oil tied to Brent. Saudi Arabia remained the top supplier to India in 2016 followed by Iraq and Venezuela.

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