India's oil imports from Iran slump 60% in Feb y/y

India's 2018/19 Iran oil imports up 5% despite US sanctions: Sources

India's 2018/19 Iran oil imports up 5% despite US sanctions: Sources

The European refiners pay the price for the US oil sanctions on Iran and Venezuela as they are trying to replace the sour crude America blocked from the global market with Russian oil, as Reuters reported.

In March India's oil imports from Iran rose to about 405,000 bpd, about 56 percent higher than February, the data showed.

India was allowed by Washington to continue to buy about 300,000 bpd oil until early May. March volumes were however about 6 percent lower than the purchase in the same month a year earlier.

Iran was the eighth biggest oil supplier to India in February compared with seventh in January, and slipped from third position it held a year ago, the data showed.

Oil exports from Iran have increased significantly in March to once again reach to near pre-sanctions level, S&P Global Platts reported citing shipping and provisional tanker tracking data.

Delivery of some cargoes is delayed to March as Tehran has a limited number of ships.

Since November, when India received the sanctions waiver, only state-run Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum and Mangalore Refinery and Petrochemicals have been buying Iranian oil.

Iran was hoping to sell more than 500,000 bpd of oil to India in 2018/19, its oil minister Bijan Zanganeh said previous year, and had offered nearly free shipping and an extended credit period to boost sales to the country. As expected, the surges in Iran's oil exports came after the country's Asian buyers rushed to use the opportunity that the waivers on US sanctions has provided. Another major reason for increased Indian buying of Iranian oil before November was that Iran was offering very attractive terms to Indian buyers, including nearly free shipping and an extended credit period for payment.

The surge in buyers searching for Urals oil has led to Russian companies reportedly making $140 million more last month than they did in October.

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