• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 9 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 6 hours Australian Voters Reject 'Climate Change' Politicians
  • 38 mins Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 5 hours Global Warming Making The Rich Richer
  • 1 hour The Consequences: Full-Blown Trade War Will Push World Towards Recession
  • 4 hours Greenpeace Blocks BP HQ
  • 5 hours Shale to be profitable in 2019!!!
  • 51 mins IMO2020 To scrub or not to scrub
  • 7 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 2 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 13 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 13 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 5 hours California Threatens Ban on ICE Cars
  • 2 hours 6 Ways to Fight Climate Change
  • 13 hours Australia Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
The Driving Force Behind Nigeria’s Energy Renaissance

The Driving Force Behind Nigeria’s Energy Renaissance

Nigeria has traditionally been one…

The Single Most Bullish Indicator For Oil

The Single Most Bullish Indicator For Oil

Crude futures saw some headwinds…

Saudis To Boost Crude Delivery To Indian Oil In H2 2019

Traffic Jam India

Saudi Arabia may soak up some of Iran’s previous market share on the Indian market as Saudi Aramco is set to ship additional 2 million barrels per month to Indian Oil Corp between July and December this year on top of the existing term supply deal between the two companies.   

“We have told them we will be taking 2 million barrels every month for six months from July (about 1.6 million tons in total) and they have agreed,” A K Sharma, Indian Oil’s director (finance), told Reuters on Friday.

India, Iran’s second largest oil customer after China, was one of the eight countries that were granted six-month waivers to continue buying oil from Iran after the U.S. re-imposed sanctions on the Iranian oil industry in November. The United States, however, pursued a maximum pressure campaign against Iran last month and put an end to all sanction waivers for all Iranian oil buyers.

This put Indian refiners in a position to source the market for alternatives, and many of them, especially private companies, did, because they are wary of possible secondary U.S. sanctions if they continue to buy oil from Iran.

Indian Oil Corp has a term deal with Saudi Aramco to buy a total of 5.6 million tons in the financial year 2019/2020, plus an option to buy another 2 million tons, according to Reuters.  

Indian Oil diversified its crude suppliers in the 2018/2019 fiscal year, and entered for the first time in a term contract to source oil from the United States, boosting its capabilities to process crude grades from a wider and cheaper basket, the company said in its annual results on Friday.

Related: Putin Could Cut His Loss As Venezuelan Oil Output Nosedives

Despite the fact that Indian Oil has asked for extra Saudi supply, Indian refiners as a group are said not to be rushing into buying extra crude from the Kingdom.

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.

Of the four state-held Indian refiners that bought Iranian oil under the sanction waivers, Mangalore Refinery and Petrochemicals (MRPL) is the only one to have taken up the Saudi’s offer for additional crude, industry sources told Reuters on Monday.

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