Connect with us

Business News

Saudi Aramco To Supply Additional 2 Million Barrels To Indian Oil Post Iran Sanctions

Published

on

Saudi Arabia may absorb 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, reported OilPrice.com.

US To Extend Iran Oil Sanctions Exemptions To India and Three Other Countries: Reports

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 US re-imposed sanctions on the Iranian oil industry in November.
The US, however, pursued a maximum pressure campaign against Iran last month and put an end to all sanction waivers for all Iranian oil buyers.
This puts 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 US sanctions if they continue to buy oil from Iran.
“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.
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.
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.
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, industry sources told Reuters.
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, it added.
Advertisement
Advertisement

Facebook

FEATURED

F-35-INDIA F-35-INDIA
Americas5 hours ago

Massive Flaw In US’ Stealth F-35 Fighter Jets Exposed During NATO Drills

The Lockheed Martin F-35 Lightning II is a single-seat, single-engine, all-weather stealth multirole combat aircraft designed to perform both air...

Armenia-Azerbaijan Armenia-Azerbaijan
EurAsian Region6 hours ago

Armenia Declares Martial Law, Prepares For A Possible War As Border Conflict Escalates With Azerbaijan

Due to flaring tensions between Armenia and Azerbaijan over the region of Nagorno-Karabakh, Armenia on Sunday declared martial law and...

China-aerial-space-Indian-Drone China-aerial-space-Indian-Drone
Americas14 hours ago

US Demonstrates Technology To Launch A ‘Drone From A Drone’ & Recover It Back Mid-Air

General Atomics, the American defence giant has stated that it has carried out captive carry tests of its new air-launched...

ARMY-INDIA ARMY-INDIA
Featured15 hours ago

After Ladakh, Why Gilgit-Baltistan Could Be Next Big Flash Point Between India And China?

In a bid to gain further control on the disputed Gilgit-Baltistan region, Islamabad has decided to upgrade its status as...

sharif-modi-meeting sharif-modi-meeting
Featured17 hours ago

Nawaz Sharif’s Speech Against Pakistan Army Widely Celebrated In India – Imran Khan

Pakistan PM Imran Khan denounced former PM Nawaz Sharif and stated that the opposition has only one agenda i.e. how...

INDIAN-ARMY INDIAN-ARMY
Asia Pacific1 day ago

Indian Army Has Deployed Additional 100,000 Troops Near The LAC – Top Chinese General

Despite the sixth round of Corps Commander level meeting between India and China which failed to provide any significant breakthrough,...

F18-India-Deal F18-India-Deal
Featured1 day ago

NATO Commitment Forces Germany To Acquire F-18 Super Hornets & Reduce Number Of Typhoons

German President Frank-Walter Steinmeier is looking to procure the new Eurofighter Typhoons and F-18 Super Hornets to bridge the gap...

INDIA-CHINA INDIA-CHINA
Expert Reviews1 day ago

‘Hot Winters’ Ahead – China Says PLA Needs To Teach A Harsh Lesson To ‘Insincere’ India – OPED

The portents of war between China and India seem to be getting more and more darker by every passing day....

SAAB-GRIPEN SAAB-GRIPEN
Featured1 day ago

SAAB Delivers Gripen-E Jets To Brazil; Offers ‘Exceptional Deal’ To The Indian Air Force

With India’s new FDI model under the new indigenization drive, SAAB has seen it as a lucrative offer and is...

F-35-INDIA F-35-INDIA
Europe2 days ago

After Rafale Jets, This Air Force Wants Stealth F-35s That Was Once Meant For Turkey?

While some recent reports indicated that with the arrival of F-35s, UAE cold shed some of its F-16s and sell...

Advertisement