*NEW DELHI: Indian refiners cut imports of Iranian oil last month as theystarted weaning their plants off crude from the country to avoid sanctionsby the United States that are set to take effect in November.*
India’s monthly oil imports from Iran declined to 592,800 barrels per day(bpd) in June, down 16 percent from May, according to data from industryand shipping sources.
The United States in May said it would reimpose the sanctions afterwithdrawing from a 2015 agreement with Iran, Russia, China, France,Germany, and Britain, where Tehran agreed to curb its nuclear activities inreturn for the lifting of earlier sanctions.
The government of India, Iran’s top oil client after China, asked refinerslast month to prepare for drastic reductions or even zero Iranian oilimports.
The first set of sanctions will take effect on Aug. 6 and the rest, notablyin the petroleum sector, following a 180-day “wind-down period” ending onNov. 4.
U.S. officials said in June they would push countries to reduce theirIranian oil imports to zero. The Indian refiners will want to comply withthe limits to maintain their access to the U.S. financial system.
“Trump administration will push for zero crude, condensate and productsexports from Iran,” said Sri Paravaikkarasu, Head of East of Suez Oil atenergy consultancy FGE. “The zero tolerance policy and the pace with whichit is moving no doubt concerns Iran’s current crude buyers.”
Overall, India’s oil imports in June rose 10.1 percent from a year ago to4.82 million bpd, the data showed. Overall purchases climbed on a higherintake of crude from Mexico, the United States and Azerbaijan. Imports fromother Middle East suppliers also increased.