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India crude oil imports outlook amid US sanctions - Banchero Costa

Logistic News - Published on Wed, 22 May 2019

Image Source: SteelGuru
Mr Nikos Roussanoglou of Hellenic Shipping News Worldwide, citing, the Iranian sanctions is yet another factor to be considered in the tanker market these days. The repercussions are far and beyond, especially after the latest move by the US to end all waivers, in an attempt to achieve its goal of zero Iranian oil exports. Among the nations most affected is India. Shipbroker Banchero Costa started its analysis on the matter, by noting that “Govt has put in place a robust plan for adequate supply of crude oil to Indian refineries. There will be additional supplies from other major oil producing countries; Indian refineries are fully prepared to meet the national demand for petrol, diesel & other Petroleum products”. This was the tweet of the Indian Petroleum Minister Dharmendra Pradhan coming after the Trump administration’s announced it will not renovate US. Iran sanctions waivers granted to the 8 largest Iran crude oil buyers– including India – which came to an end on May 2, 2019, as scheduled when firstly introduced. India and Iran hold long-established cultural and business relationships.”

According to Banchero Costa, “in 2018 Iran, ranking as the world’s fourth largest reserve holder of oil according to US Energy Information Administration (EIA), was the thirdlargest crude oil supplier to India, accounting for 11 percent of Indian crude oil imports after Iraq and Saudi Arabia, which accounted for 21 and 18 percent respectively, and followed by Venezuela (8 percent). In terms of crude oil supply, India is facing a challenging 2019: in addition to the Iran sanctions waivers expiry, U.S. imposed sanctions against the Venezuelan oil sector in January 2019. And following these two events, some 732,000 bpd of crude oil were effectively removed in April 2019, according to Lloyd’s List Intelligence data. Even if no names were shown in the above-mentioned tweet, Indian efforts to diversify its crude oil supply can be seen by comparing the 2018 and 2019 first quarter imported volumes”.

The shipbroker said that “According to the Directorate General of Commercial Intelligence and Statistics (DGCIS) data, imports from Mexico, UAE and Saudi Arabia increased by 58, 47 and 11 percent respectively – with UAE passing from the 8 th source of crude oil in Q1-2018 to the forth in Q1- 2019 – while U.S. shipped around 1.82 million tonnes of crude to India in Q1 2019, around 6.6 times Q1 2018 volumes. Data shows that the total quantity of crude oil imported from Iran plunged from around 5.95 million tonnes in Q1-2018 to around 4.15 million tonnes in Q1-2019 (-30 percent).”

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Posted By : Rabi Wangkhem on Wed, 22 May 2019
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