Indian refiners cut imports of Iranian oil last month as they started weaning their plants off crude from the country to avoid sanctions by the United States that are set to take effect in November.
India’s oil imports from Iran declined by 15.9 percent in June, the first month after the United States said it would reimpose sanctions on the country, according to data from shipping and industry sources.
One of Iran’s biggest oil buyers said it has enough alternative sources of crude to replace any supplies cut off by U.S. sanctions on the Persian Gulf state — even if shipments stop completely.
India’s oil imports from Iran will be affected from end-August as the State Bank of India has informed India’s refiners it will not handle oil deal payments from November, the finance head of Indian Oil Corp said on Friday.
Indian private refiner Nayara Energy, a key buyer of Iranian oil, is prepared to replace Iranian oil if required under U.S. sanctions and hopes to settle dues owed to Tehran for past purchases ahead of a November deadline, its chief executive said.
A tanker carrying Iranian oil and run by the country’s top oil shipping operator was ablaze and spewing cargo into the East China Sea on Sunday after colliding with a Chinese bulk ship, leaving its 32 crew members missing, the Chinese government said.
India’s government-run refiners plan to import less Iranian crude oil in the 2017/2018 fiscal year ending March 2018, than the crude from Iran they bought in the previous fiscal year, according to India’s Oil Minister Dharmendra Pradhan.