Under the looming threats of US sanctions upon India and any country for importing oil from Iran, Saudi Arabia has agreed to supply India with extra 4 million barrels of crude oil in addition to the regular cargos in November this year.
Being world’s largest crude oil exporter Saudi Arabia will send extra oil cargoes to India this month to suffice the shortfall created due to the looming Iran sanctions. The extra crude from the Kingdom shows their willingness to overcome the shortfalls and fill in the void of reduced imports from Iran – which is third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC). The extra oil cargoes are a welcome for India – as it is Iran’s top oil client after China and the cut off in oil import leads to shortfall.
Reliance Industries Ltd, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemicals Ltd are seeking an additional 1 million barrels each in November from Saudi Arabia, the sources said. Three of the companies did not immediately reply to an email from Reuters seeking comment. MRPL replied “no comments” when contacted by email. Given their dependence on Iranian oil supplies, the domestic refiners are concerned about the loss of Iranian crude once the sanctions start and are seeking exemptions. Refiners in the country have placed orders to buy 9 million barrels from Iran in November.