New Delhi: Saudi Arabia replaced Iraq as top oil supplier to India in July after a gap of more than a year, according to data from industry and shipping sources, as a higher intake of Iranian oil ahead of US sanctions altered trade routes.
Many European refiners are winding down purchases of Iranian oil after the US imposed sanctions on Tehran, leading to higher supplies to Asia, mainly India and China.
The US in May quit the 2015 nuclear deal and announced reimposition of sanctions on Tehran.While some sanctions were implemented from August 6, those affecting Iran’s petroleum sector will come into force from November 4.
Imports of Iranian oil by India, Tehran’s top oil client after China, surged to a record 7,68,000 bpd in July due to higher intake by state refiners, tanker arrival data showed.
India’s top refiner wants to continue buying Iranian oil as the OPEC member is offering discounts in freight and extended credit period, Sanjiv Singh, chairman of Indian Oil, said on Monday.
Saudi Arabia and Iraq continued to be the two biggest oil suppliers to India last month although monthly supplies from them declined by 12 per cent and about 23 per cent in July, the data obtained from shipping and trade sources showed. The sources declined to be identified.
On top of incentives offered by Iran on oil sales, higher July official selling prices of oil from Saudi Arabia and Iraq also dented demand for their oil.
