NEW DELHI: India is among the top destinations where Iran looks to export more crude oil following the lifting of US sanctions against the Persian Gulf country and green signal from the International Atomic Energy Agency. "With consideration to global market conditions and the surplus that exists, Iran is ready to raise its crude oil exports by 500,000 barrels a day," Iran's deputy oil minister Amir Hossein Zamaninia was quoted as saying by the Shana news agency.
And, according to Iranian government sources, Tehran is targeting India besides its traditional European partners as one of its top destinations. Sources said crude tankers are already in the Iranian waters, ready to set sail for destinations including India. They said Tehran is not contemplating increasing oil exports to China, South Korea or Japan due to slow demand and also because of a shift in those countries towards getting oil beyond West Asia and the Persian Gulf.
India currently imports 260,000 barrels of oil a day from Iran, which has the world's fourth-biggest proven oil reserves. Mangalore Refinery and Petrochemicals (MRPL), Indian Oil Corporation, and Essar Oil are the primary buyers of the Iranian oil.
With Indian car market growing faster than China and the country's economic growth rate picking up, it is implied that India's demand for oil will increase. Iran was exporting up to 800,000 bpd to Europe, including to oil majors Royal Dutch Shell, Italy's ENI and France's Total Greek Hellenic Petroleum and Spain's Repsol and Turkish firms before sanctions were imposed on Tehran.
This figure could be restored postsanctions. However, there are speculations that oil prices could fall further when Iran increases exports. Indian oil imports from Iran, too, have been on the decline since the sanctions were imposed and payments became difficult.
Source :economictimes.indiatimes.com
No comments:
Post a Comment