Published: June 18, 2018 |

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Reuters reported that Indian refiner Nayara Energy, one of the country’s biggest buyers of Iranian oil, began cutting imports this month after the United States scrapped a nuclear deal with Tehran and said it would re-impose tough sanctions, three people familiar with knowledge of the matter said.

Previously named Essar Oil, Nayara was bought by Russian state oil-giant Rosneft and partners in a USD 12.9 billion deal last year. It typically buys around 5.5-6 million barrels a month from Iran, according to data made available to Reuters from industry and shipping sources.

The cuts by Nayara provide the latest indication that Asian buyers will cut orders from Iran after US President Mr. Donald Trump last month pulled out from the 2015 accord between Iran and world powers that lifted sanctions on Tehran in exchange for curbs to its nuclear program.

One of the people, said that “Nayara will be lifting about 40-50 percent less than the average volumes, limiting its intake of Iranian oil to about 3-4 million barrels in a month.” All three sources declined to be identified as they were not authorized to talk to media.

The Oil Ministry’s news agency SHANA reported that Iran’s oil exports hit 2.7 million barrels per day (bpd) in May.

According to the data from shipping and industry sources, India, the world’s third-biggest oil consumer and importer, imports about 4.5 million bpd.

Asked by Reuters whether Nayara plans to reduce monthly Iranian oil imports by 40-50 percent, the company said, “There are no specific cut-backs planned as of now,” adding “we are still seeking clarifications from all concerned.”

The US sanctions on Iran’s petroleum industry will take effect after a 180-day “wind-down period” ending on Nov. 4 but many European refiners, as well as buyers in Asia, are already winding down Iranian oil purchases.

Source:  Steel Guru

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