India’s crude oil imports from Iran and Saudi Arabia

04 February 2019

India’s crude oil imports from Iran dropped 63% to 0.86 Million Tonne in December, the lowest recorded in calendar year 2018, fresh data sourced from Directorate General of Commerce Intelligence and Statistics (DGCIS) showed. India had imported 2.32 Million Tonne of Iranian crude in December 2017.

Crude oil imports
Source: Google

Cumulatively, oil imports from Iran during the April-December 2018 period increased 18% to 19.75 MT, as compared to 16.65 MT imported in the corresponding period a year ago.

India’s crude oil imports from Iran have been declining since November after US’ secondary sanctions targeting Iran’s energy sector came in effect.

Making good the restrictions on Iranian crude oil exports, India’s oil imports from Saudi Arabia jumped 53% 3.02 MT in December 2018. Cumulatively, India’s crude oil imports from Saudi Arabia in the April-December period jumped 13% to 29.39 MT.

India and Iran had on 2 November signed a bilateral agreement to settle oil trades through Indian government-owned UCO Bank in the Indian currency, which is not freely traded on international markets.

According to data sourced from DGCIS, most of the Iranian crude during April-December 2018 came through the Paradip Port which handled around 4.68 MT of Iranian crude during the period as compared to 1.91 MT handled in the corresponding period previous year.

New Mangalore port handled 4.50 MT of Iranian crude during the April-December period as against 3.58 MT handled in the corresponding period previous year. Vadinar port handled 4.47 MT of Iranian crude during the period as compared to 5.35 MT handled in the nine months period previous year.