India said to cut Iranian oil imports to zero in Nov
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. Manga- lore Refinery and Petrochemicals Ltd hasn’t made any nominations for that month, but may do so later, a company official said.
The companies 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. Around the world, only Saudi Arabia and, to a lesser extent, United Arab Emirates (UAE) and Russia, have the capacity to pump more.
Brent crude was up 22 cents at $82.09 a barrel by 8.15 am in London, after climbing almost 4% over the previous two sessions, just as US President Donald Trump rails against Opec and demands the cartel lower oil prices. Futures are up about 40% in the past 12 months.
On Tuesday, Trump told the United Nations General Assembly that Iran’s leaders “sow chaos, death and destruction” in a speech that also derided Opec.
NEWDELHI:India