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India's Iranian oil imports in June fall as sanctions fears bite - sources

Reuters  |  NEW DELHI 

By and Sai Sachin Ravikumar

NEW DELHI (Reuters) - India's imports from declined by 15.9 percent in June, the first month after the said it would reimpose sanctions on the country, according to data from shipping and industry sources.

In June, imported 592,800 barrels per day (bpd) of from compared to 705,200 bpd in May, the data showed. The sources declined to be identified.

India, Iran's top client after China, has asked refiners to look for alternative as the nation may have to drastically cut imports from to comply with the renewed U.S. sanctions.

The in May said it would reimpose the sanctions after withdrawing from a 2015 agreement with Iran, Russia, China, France, Germany, and Britain, where agreed to curb its nuclear activities in return for the lifting of earlier sanctions.

Lower purchases by private refiners dragged down India's June imports from although state refiners stepped up purchases.

State refiners, accounting for about 60 percent of India's nearly 5 million bpd of refining capacity, lifted about 10 percent more Iranian volumes in June compared to May, at about 454,000 bpd, the data showed. Indian state refiners had cut from Iran in the 2017/18 financial year because of a dispute over the development rights for an Iranian However, the state refiners had drawn plans to raise imports in the current fiscal year starting in April after Iran offered free shipping and an extended credit period of 60 days. In April to June 2018, the first quarter of this fiscal year, India's from Iran rose by about 24 percent to about 647,000 bpd from the previous quarter, the data showed.

Imports by state refiners during the period more than doubled to about 413,400 bpd from 191,700 bpd, the data showed.

(Reporting by Nidhi Verma; Editing by Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 11 2018. 11:15 IST