Friday (September 27): India shipped in about 1.32 million barrels per day (bpd) of Iraqi oil in August, about a third more than July and 29% higher than August 2018, the data showed.
India is world’s third biggest crude oil importer.
Iraq held its position as the top oil supplier to India followed by Saudi Arabia, the data showed.
“In the spot market, Saudi and the UAE (United Arab Emirates) barrels are not available while Iraqi oil was easily available in spot markets at attractive prices, prompting refiners to maximize purchases of Iraqi oil,” said Refinitiv analyst Ehsan Ul-Haq.
Production cuts by the OPEC (Organization of the Petroleum Exporting Countries) and U.S. sanctions on Iran and Venezuela tightened heavy sour crude supplies, also enabling Iraq, OPEC’s No. 2 producer, to gain market share in India.
Iraq has been pumping 4.8 million bpd in recent months instead of its target of 4.5 million bpd, while Saudi Arabia has been producing below the targets.
India’s overall imports during August were about 4.7 million bpd, same as in the year ago month, the data showed.
Reliance Industries doubled Iraqi oil imports in August from the same month last year to about 1.8 million tonnes, the data showed.
Due to higher imports from Iraq and Saudi Arabia, India’s overall imports from the Middle East rose to 16% in August from July, the data showed.
