US replacing Iran for India’s oil imports?
In the backdrop of the sanctions imposed by it on Iran, US has emerged as a leading source for India’s oil importers. India, touted as the world’s third-biggest oil importer, bought about 184,000 barrels per day (bpd) of oil from the US over November 2018 to May 2019, compared to 40,000 bpd during the same period last year. At the same time, there has been a 48% decline in oil trade with Tehran to 275,000 bpd. Vietnam was another source for India’s oil imports. While Iraq & Saudi Arabia also managed to establish their presence in Asian markets, there’s a view that India may have to look more towards US for meeting its oil needs.
“Venezuela’s oil output is now declining. Saudi grades are costly, and Iraq has limited capacity to sell extra oil. So Indian refiners can’t escape from US oil,” opined Sri Paravaikkarasu, director for Asia oil at energy consultancy FGE.