INSUBCONTINENT EXCLUSIVE:
India used to be Iran's second-biggest oil client after ChinaOil refiners, anticipating a lifting of United States sanctions, plan to
make space for the resumption of Iranian imports by reducing spot crude oil purchases in the second half of the year, company officials told
The world's third-largest oil consumer and importer halted imports from Tehran in 2019 after former United States President Donald Trump
withdrew from a 2015 accord and re-imposed sanctions on the OPEC producer over its disputed nuclear programme
United States President Joe Biden's administration and Iran have been involved in indirect talks to revive the pact for Tehran to curb
its nuclear activities in exchange for a lifting of sanctions.Analysts expect Iran to ramp up crude exports to 1.5 million barrels per day
in the fourth quarter when sanctions are lifted
India, used to be Iran's second-biggest oil client after China, buying as much as 480,000 bpd in the fiscal year beginning April
2018.Several Indian state refiners, whose refineries are suited to the crude, have committed to buy Iranian oil once sanctions are lifted
sanctions are lifted, a company spokesman said.High sulphur distillate-rich Iranian crude suits BPCL's Kochi refinery and costs
$2-$2.5/barrel less than similar grades, he said, adding that Iran's proximity means India also has lower freight costs
Hindustan Petroleum Corporation (HPCL) also said it would buy Iranian crude if the price is right and it is suitable."HPCL will consider
buying Iranian oil depending on techno economic suitability as and when sanctions are lifted and situations are conducive for commercial
transactions," chairman M
Top refiner Indian Oil Corp is also expecting to reduce spot purchases and can easily process about 2 million tonnes (14.6 million barrels)
Indian refiners have raised the share of spot purchases versus term contracts to gain from cheaper barrels available in a surplus market
After the halt in Iranian oil, Indian had diversified its imports and raised its share of United States oil.An official at Mangalore
Refinery and Petrochemicals Ltd said his company would also cut spot purchases and buy Iranian oil.Share of various regions in India's oil
importsPhoto Credit: ReutersThe resumption of Iranian oil supplies will help India replace lower supplies from Iraq and Kuwait, also members
of the Organization of the Petroleum Exporting Countries, which has lowered output to support oil prices.India's relations with OPEC's
biggest member Saudi Arabia came under strain after it said the producer group's output curbs were damaging to consumers
Tensions eased this month after Saudi Arabia provided India with oxygen to help it deal with a surge in COVID-19.
