TEHRAN: Iran overtook political rival Saudi Arabia as India’s top oil supplier in October, shipping data showed, just ahead of a producers’ meeting this month to hammer out the details on output cuts aimed at reining in a global glut.
Iran used to be India’s second-biggest oil supplier, a position it ceded to Iraq after tough Western sanctions over its nuclear development programme limited Tehran’s exports and access to finance.
“India’s oil imports from Iran have shot up this year after those sanctions were lifted in January,” said the Iranian petroleum ministry in a statement earlier this month.
In October, Tehran surged more than threefold compared with the same month last year, rising to 789,000 barrels per day (bpd). That compares to 697,000 bpd supplied last month by Saudi Arabia,” it added.
According to ship tracking data and a report compiled by Tehran Oil Research and Forecasts (TORF), Iran’s surge to the No.1 spot is due partly to less available crude from Saudi Arabia, which has increased its capacity to refine oil instead of just exporting more crude.
“Saudi Arabia’s refining capacity has increased over time so it is not in a position to increase its exports further, whereas Iran is better placed to raise its output and sales to India,” said Ehsaan Ul Haq of UK.-based consultancy KBC Energy.
Iran produces almost 4 million bpd of oil and exports 2.4 million bpd. Tehran’s exports dropped to 1 million bpd during sanctions, down from a peak of almost 3 million bpd in 2011, before tougher Western sanctions were implemented.
