A worker walks atop a tanker wagon to check the freight level at an oil
terminal on the outskirts of Kolkata in this November 27, 2013 file
photo. REUTERS/Rupak De Chowdhuri/Files
NEW DELHI (Reuters) - India's monthly oil imports from Iran plunged
to their lowest in a year in November with Tehran dropping two places to
become only the sixth biggest supplier after New Delhi cut purchases
due to the impact of U.S. sanctions, according to ship tracking data and
industry sources.
Last month, the United States introduced tough sanctions aimed at
crippling Iran's oil revenue-dependent economy. Washington did, though,
give a six-month waiver from sanctions to eight nations, including
India, and allowed them to import some Iranian oil.
India is restricted to buying 1.25 million tonnes per month, or about 300,000 barrels per day (bpd).
In November, India imported about 276,000 bpd of Iranian oil, a
decline of about 41 percent from October and about 4 percent more than
the year-ago month, ship tracking data obtained from shipping and trade
sources showed.
After abandoning the 2015 Iran nuclear deal, U.S. President Donald
Trump is trying to force Tehran to quash not only its nuclear ambitions
and its ballistic missile programme but its support for militant proxies
in Syria, Yemen, Lebanon and other parts of the Middle East.
India's imports from Iran in November, included some parcels that
were loaded in October. In November, Iraq and Saudi Arabia continued to
be the top two oil sellers to India.
The UAE, which was the sixth biggest oil seller to India in October,
became the third top seller to India in November, knocking down
Venezuela by a notch to fourth position.
Nigeria continued at No. 5 position, while Iran slipped to sixth place.
"Iran do not have vessels to export oil on time ... some November
loading vessels will arrive in December," said an industry source, with
knowledge of the matter.
Local and international shippers are not carrying Iranian cargoes
despite India winning a waiver, this source said. The key problem is
that while India can import Iranian oil without falling foul of
Washington, that may not apply to a shipping company signing a new
delivery contract.
Instead, India is relying on Iranian tankers for crude imports and Iran is using many of its vessels for crude storage.
The sources declined to be identified citing the confidentiality of the numbers.
Indian refiners, wary of the impact of U.S. sanctions, had boosted
imports from Iran ahead of their introduction, with imports averaging
about 563,000 bpd in April-November, a growth of about 32 percent from a
low base in the previous fiscal year, the data showed.
In the previous financial year to March 2018 India had cut oil
imports from Iran due to a dispute over development rights of a giant
gas field.
Iran was hoping to sell more than 500,000 bpd of oil to India in
2018/19, its oil minister Bijan Zanganeh said in February, and had
offered almost free shipping and an extended credit period to boost
sales to India.
Government sources say Reuters' calculations showing India's oil
imports from Iran in this fiscal year would be higher than the 452,000
bpd, or 22.6 million tonnes, it imported in the previous year, are
correct.
During January-November this year India's oil imports from Iran rose by an annual 18.4 percent to 552,000 bpd, the data showed.
(Reporting by Nidhi Verma; Edited by Martin Howell and David Evans)
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