Indian Oil Corp: Cutting Iran Oil Imports to Zero Unrealistic
The prospects of Indian refiners cutting their intake of Iranian crude oil to zero are unrealistic, the chairman of Indian Oil Corporation told S&P Global Platts.
Although the company, the largest oil player in India, has reduced its imports of Iranian crude, Sanjiv Singh said the chances of cutting all the way to zero are slim, adding that the company had booked Iranian oil cargos for delivery this month despite the fact sanctions come into effect Monday.
"We strongly believe that if Iran goes out of the global market, it will destabilize the market -- at least for some time. Personally, I do not think India can afford zero Iran supplies," Singh noted.
The executive went on to say that IOC had reduced its imports of Iranian crude “slightly” beginning in October as Washington considers a waiver for India from the sanctions. In fact, the Economic Times—an Indian daily, reported on Friday citing a source in the know, that the waiver had already been granted on the condition that Indian refiners reduce their combined imports of Iranian crude by 35% in fiscal 2018-19 from the previous year.
Iranian crude shipments to Indian refiners hit 600,000 bpd in September before declining to 500,000 bpd in October, a level expected to be maintained this month as well.
At the same time, imports from the United States had also risen significantly earlier this year, after President Donald Trump announced the sanctions for the first time. In May, US exports of crude to India averaged 152,000 bpd, up from 29,000 bpd for January to April, and this jumped further to 261,000 bpd in June.
Afterwards, however, shipments began to decline mostly on the back of the higher price of US crude, according to Singh.
India’s Oil Minister Dharmendra Pradhan said Saturday that India and other leading oil buyers would benefit from the US waiver they have been granted. “In the current geopolitically challenging scenario, India has managed to convince international leaders,” Pradhan said.
The US said on Friday it would temporarily allow eight importers to keep buying Iranian oil when it re-imposes sanctions on Monday to try to force Iran to curb its nuclear, missile and regional activities.
US secretary of state, Mike Pompeo, who announced the decision, did not name the eight; however, a source familiar with the matter who spoke on condition of anonymity, said that China, India, South Korea, Turkey, Iraq, Japan and Taiwan are among them.
source: Financial Tribune
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
