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India's 2016 Iran oil imports hit record high

Sharp increase propelled Iran into 4th place among India's suppliers in 2016

Reuters  |  New Delhi 

Oil, petrol
A worker walks atop a tanker wagon to check the freight level at an oil terminal on the outskirts of Kolkata. Photo: Reuters

India's annual from surged to a record high in 2016 as some refiners resumed purchases after the lifting of sanctions against Tehran, according to ship tracking data and a report compiled by Thomson Reuters Research and Forecasts.

The sharp increase propelled into fourth place among India's suppliers in 2016, up from seventh position in 2015. It used to be India's second-biggest supplier before sanctions.

For the year, the world's third-biggest consumer bought about 473,000 barrels per day (bpd) of from to feed expanding refining capacity, up from 208,300 in 2015, the data showed.

In December, from trebled from a year earlier to about 546,600 bpd.

In 2015 refiners slowed purchases due to sanctions which choked payment routes, insurance and halved Iran's exports.

Indian refiners Reliance Industries, Hindustan Petroleum, Bharat Petroleum and HPCL-Mittal Energy Ltd (HMEL) last year resumed from Tehran, attracted by the discount offered by Iran.

"In most of 2016 there was a fight among Gulf producers to increase their market share and lifting of sanctions against has intensified that fight," said Ehsan ul Haq, senior analyst at London-based consultancy KBC Energy Economics.

In April-December, the first nine months of this financial year, Iranian supplies to averaged a record 530,300 bpd, up from about 400,000 before sanctions tightened against Tehran.

India's 2016 Iranian were the highest in at least six years, according to the Reuters data.

Government data going back over a longer period shows the average was the highest since the 2001-02 financial year.

Overall, imported 4.3 million in 2016, up 7.4 per cent from the previous year.

MIDDLE EAST JUMP

Rising from and Iraq lifted the Middle Eastern share in India's crude diet to 64 per cent in 2016, reversing a declines in recent years, partly due to rising prices for Atlantic Basin tied to Brent.

The average premium for Brent jumped against Dubai crude to more than $3 a barrel in 2016 from around $1.80 in 2015.

"In 2016 ramped up its output to regain market share while Iraq segregated its production into Basra Light and Heavy to attract customers. Basra Heavy was sold at a discount, making it more attractive than rival grades," said Haq.

Iran's share of Indian surged to 11 per cent in 2016 from 5 per cent in 2015.

Saudi Arabia remained the top supplier to last year followed by Iraq and Venezuela.

from Latin America declined for a second year, with its share of shrinking to about 16 per cent from 18 per cent, while Africa's share fell to about 15 per cent from a fifth.

"Low prices brought down production in Latin America while Nigerian barrels were impacted by violence in the Niger Delta. Also falling US output impacted trade flows, with some Latin American and African finding a place in the US," Haq said.

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India's 2016 Iran oil imports hit record high

Sharp increase propelled Iran into 4th place among India's suppliers in 2016

Sharp increase propelled Iran into 4th place among India's suppliers in 2016
India's annual from surged to a record high in 2016 as some refiners resumed purchases after the lifting of sanctions against Tehran, according to ship tracking data and a report compiled by Thomson Reuters Research and Forecasts.

The sharp increase propelled into fourth place among India's suppliers in 2016, up from seventh position in 2015. It used to be India's second-biggest supplier before sanctions.

For the year, the world's third-biggest consumer bought about 473,000 barrels per day (bpd) of from to feed expanding refining capacity, up from 208,300 in 2015, the data showed.

In December, from trebled from a year earlier to about 546,600 bpd.

In 2015 refiners slowed purchases due to sanctions which choked payment routes, insurance and halved Iran's exports.

Indian refiners Reliance Industries, Hindustan Petroleum, Bharat Petroleum and HPCL-Mittal Energy Ltd (HMEL) last year resumed from Tehran, attracted by the discount offered by Iran.

"In most of 2016 there was a fight among Gulf producers to increase their market share and lifting of sanctions against has intensified that fight," said Ehsan ul Haq, senior analyst at London-based consultancy KBC Energy Economics.

In April-December, the first nine months of this financial year, Iranian supplies to averaged a record 530,300 bpd, up from about 400,000 before sanctions tightened against Tehran.

India's 2016 Iranian were the highest in at least six years, according to the Reuters data.

Government data going back over a longer period shows the average was the highest since the 2001-02 financial year.

Overall, imported 4.3 million in 2016, up 7.4 per cent from the previous year.

MIDDLE EAST JUMP

Rising from and Iraq lifted the Middle Eastern share in India's crude diet to 64 per cent in 2016, reversing a declines in recent years, partly due to rising prices for Atlantic Basin tied to Brent.

The average premium for Brent jumped against Dubai crude to more than $3 a barrel in 2016 from around $1.80 in 2015.

"In 2016 ramped up its output to regain market share while Iraq segregated its production into Basra Light and Heavy to attract customers. Basra Heavy was sold at a discount, making it more attractive than rival grades," said Haq.

Iran's share of Indian surged to 11 per cent in 2016 from 5 per cent in 2015.

Saudi Arabia remained the top supplier to last year followed by Iraq and Venezuela.

from Latin America declined for a second year, with its share of shrinking to about 16 per cent from 18 per cent, while Africa's share fell to about 15 per cent from a fifth.

"Low prices brought down production in Latin America while Nigerian barrels were impacted by violence in the Niger Delta. Also falling US output impacted trade flows, with some Latin American and African finding a place in the US," Haq said.
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Business Standard
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India's 2016 Iran oil imports hit record high

Sharp increase propelled Iran into 4th place among India's suppliers in 2016

India's annual from surged to a record high in 2016 as some refiners resumed purchases after the lifting of sanctions against Tehran, according to ship tracking data and a report compiled by Thomson Reuters Research and Forecasts.

The sharp increase propelled into fourth place among India's suppliers in 2016, up from seventh position in 2015. It used to be India's second-biggest supplier before sanctions.

For the year, the world's third-biggest consumer bought about 473,000 barrels per day (bpd) of from to feed expanding refining capacity, up from 208,300 in 2015, the data showed.

In December, from trebled from a year earlier to about 546,600 bpd.

In 2015 refiners slowed purchases due to sanctions which choked payment routes, insurance and halved Iran's exports.

Indian refiners Reliance Industries, Hindustan Petroleum, Bharat Petroleum and HPCL-Mittal Energy Ltd (HMEL) last year resumed from Tehran, attracted by the discount offered by Iran.

"In most of 2016 there was a fight among Gulf producers to increase their market share and lifting of sanctions against has intensified that fight," said Ehsan ul Haq, senior analyst at London-based consultancy KBC Energy Economics.

In April-December, the first nine months of this financial year, Iranian supplies to averaged a record 530,300 bpd, up from about 400,000 before sanctions tightened against Tehran.

India's 2016 Iranian were the highest in at least six years, according to the Reuters data.

Government data going back over a longer period shows the average was the highest since the 2001-02 financial year.

Overall, imported 4.3 million in 2016, up 7.4 per cent from the previous year.

MIDDLE EAST JUMP

Rising from and Iraq lifted the Middle Eastern share in India's crude diet to 64 per cent in 2016, reversing a declines in recent years, partly due to rising prices for Atlantic Basin tied to Brent.

The average premium for Brent jumped against Dubai crude to more than $3 a barrel in 2016 from around $1.80 in 2015.

"In 2016 ramped up its output to regain market share while Iraq segregated its production into Basra Light and Heavy to attract customers. Basra Heavy was sold at a discount, making it more attractive than rival grades," said Haq.

Iran's share of Indian surged to 11 per cent in 2016 from 5 per cent in 2015.

Saudi Arabia remained the top supplier to last year followed by Iraq and Venezuela.

from Latin America declined for a second year, with its share of shrinking to about 16 per cent from 18 per cent, while Africa's share fell to about 15 per cent from a fifth.

"Low prices brought down production in Latin America while Nigerian barrels were impacted by violence in the Niger Delta. Also falling US output impacted trade flows, with some Latin American and African finding a place in the US," Haq said.

image
Business Standard
177 22