India said to cut its oil imports from Iran to zero in November

INDIAN OIL CORP. AND BHARAT PETROLEUM CORP. HAVEN’T ASKED FOR IRANIAN CARGOES FOR LOADING IN NOV

NEWDELHI:INDIA isn’t planning to buy any Iranian oil in November, raising the prospect that Tehran will lose another major customer as US sanctions hit and spurring speculation over whether China will follow suit.

India is joining other Asian buyers such as South Korea and Japan that have already halted imports from the Persian Gulf state before American restrictions take effect in early November. It’s unclear if China, the world’s biggest oil importer as well as Iran’s top customer, will persist with purchases.

Indian Oil Corp. and Bharat Petroleum Corp., the country’s two largest state-owned refiners, haven’t asked for any Iranian cargoes for loading in November, according to officials at the companies. Nayara Energy also doesn’t plan any purchases, said an industry executive. Mangalore Refinery and Petrochemicals Ltd hasn’t made any nominations for that month, but may do so later, a company official said.

The firms are the four largest buyers of Iranian oil in India, accounting for almost all of the country’s imports from the Islamic republic. Final decisions on purchases aren’t due until early October, so the refiners could still change their minds. The officials and industry executive asked not to be identified because of internal policies.

“Iranian exports may drop below 1 million barrels a day in November, with Indian refiners potentially loading nothing and China cutting back as well,” Amrita Sen, chief oil analyst at Energy Aspects Ltd in London, said in a note to clients.

The rapid drop in Iranian exports has helped to push Brent crude, the global benchmark, to a four-year high above $80 a barrel. Further output losses could drive prices even higher as refiners urgently seek replacement barrels elsewhere.