Saudi Arabia to Cover Iranian India Supply Losses in November

Saudi Arabia to Cover Iranian India Supply Losses in November

Saudi Arabia is preparing to export an additional 4 million barrels of crude to India in November, several sources familiar with the matter told Reuters on October 10.

The additional supply indicates a Saudi willingness to cover the shortfall in crude supply once US sanctions on oil exports from Iran take effect on November 4.

India buys the second most Iranian crude after China, and several refiners have indicated that they will no longer take Iranian barrels because of the sanctions.

Some Indian refiners have been seeking exemptions from US sanction because of their dependence on Iranian crude.  A total of 9 million barrels have been ordered from Iran to India in November.

The demand for Saudi barrels is partly due to the US crude arbitrage being shut, meaning Indian buyers have to turn to the Middle East for supply, one of the sources said.

India currently imports 25 million barrels per month on Saudi Arabian crude.

Mariana Somensi 890 Posts

Mariana holds a Journalism Bachelor Degree from the State University of Londrina, Brazil. The Brazilian journalist has 4 years of experience on the MENA region's affairs and over a year of experience on the oil and gas industry.


Welcome! Login in to your account

Remember me Lost your password?

Don't have account. Register

Lost Password