• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 2 hours americavchina.com (otherwise known as OilPrice).
  • 1 day Everything you think you know about economics is WRONG!
  • 1 day Wallstreet's "acid test" for Democrat Presidential candidate to receive their financial support . . . Support "Carried Interest"
  • 2 days Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 2 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 9 hours Natural Gas
  • 5 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 2 days Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 15 hours Winter Storms Hitting Continental US
  • 1 day 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 2 days Quotes from the Widowmaker
  • 2 days Tesla Launches Faster Third Generation Supercharger
  • 4 hours My interview on PDVSA Petrocaribe and corruption
Aramco Looks To Build An LNG Fleet

Aramco Looks To Build An LNG Fleet

Aramco’s shipping division has expressed…

India Not Rushing To Buy Extra Saudi Oil To Offset Lost Iranian Supply

India flag

Just one Indian refiner has agreed to buy additional crude oil supply from Saudi Arabia to compensate for the loss of Iranian barrels, as India’s firms have been looking for months to diversify their crude sources and as the Kingdom raised its prices to Asia to take advantage of the supply crunch.

Mangalore Refinery and Petrochemicals (MRPL) is the only Indian refiner out of four state-held companies that had bought Iranian oil under the sanction waivers to have taken up the Saudi offer for additional crude supplies, and will lift around 2 million barrels in June on top of its normal purchase of 2.5 million barrels, industry sources told Reuters on Monday.

Under its exemption from the U.S. sanctions on Iran that ended at the beginning of May, India was allowed to buy some 300,000 bpd of Iranian oil.

Now that the waivers are over, just one of the four Indian refiners has requested more Saudi oil for June, according to Reuters’ sources. There are two key reasons for the lukewarm reception of the extra Saudi supply—high Saudi official selling prices (OSPs) for its Asian customers for June, and the greater diversification of the Indian refiners who are looking to other suppliers from the Middle East and to other countries, including Mexico, Brazil, and the United States.

Related: Oil Opens Higher After Saudi Arabia Reports Attacks On Oil Tankers

India’s four state-held oil refiners who were Iranian customers until last month have been diversifying suppliers to offset possible tighter U.S. sanctions on Iranian oil, and all four were certain that they won’t have trouble replacing any loss of Iran’s oil with more supplies from the Arab Gulf OPEC members, from Mexico, and the United States, company officials told Reuters before the U.S. announced the end of all sanction waivers for Iranian customers.

“In our system, UAE and Iraq oil turned out to be better than Saudi oil,” a source at an Indian refinery told Reuters today.

Earlier this month, American officials said that the United States was working with oil producers like Saudi Arabia and the UAE to ensure India has enough crude supply after the end of the sanction waivers, but the U.S. can’t ensure its own oil will be sold to India at preferential prices.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play