[You must be registered and logged in to see this image.]Saudi Arabia replaces Iraq as the largest oil supplier to India
Saudi Arabia replaced Iraq as the largest supplier of oil to India last July, more than a year after it abandoned the center, according to data from the oil sector and shipping sources. The purchase of large quantities of Iranian oil before US sanctions came into effect changed trade routes.
Many European refineries cut their purchases of Iranian crude after the United States imposed sanctions on Tehran, prompting shipments to Asia, India and China, according to Reuters.
The United States withdrew last May from the 2015 nuclear agreement with Iran and announced the re-imposition of sanctions on Tehran. Some sanctions came into force on August 6, but those sanctions targeting Iran's oil sector will take effect from November 4.
Saudi Arabia and Iraq continued to be the largest suppliers of oil to India last month, although their monthly supply fell by 12 percent and about 23 percent in July, according to data from shipping and trade sources.
Lower purchases by other importers such as Japan, South Korea and Europe have also led to more shipments to India, said Susant Gupta, director of research at Wood Mackenzie Consulting.
"The deadline for the reduction of purchases of Iranian crude is November 4. So with that increase in July, India will cut its imports of Iranian crude further in the fourth quarter of 2018. "
Saudi Aramco increased the price of light Arab crude for shipments last month to Asia to its highest level in four years, while Iraq raised the official sale price of Basra light crude to Asia by $ 0.40 a barrel.