Iran outpaces Saudi Arabia as India’s major oil supplier

According to media reports, Iran outpaced Saudi Arabia in oil supply to the world’s fastest-growing oil consumer, India. Iran showed up as the major supplier of oil to India in October, which happened for the first time in 2016, according to Bloomberg. Iran boosted its crude production and sales in 2016 following the sanctions that lasted for years. Its crude is mainly used by India to fill its strategic petroleum reserves.

Director of Bharat Petroleum reportedly said that Iranian crude is a better alternative to Saudi crude with its better yield pattern and short delivery and that it is likely to have a higher share in the Indian market along with Saudi and Iraqi crude.

According to the shipping data from Bloomberg, Iran’s October supplies increased by 56% to 759,700 barrels/day while Saudi supplies were 717,000 barrels/day and Iraq’s were 488,000 barrels/day.

In the July-September period, Iran’s crude supply to India reportedly grew by 51% when compared to the second quarter. Saudi Arabia’s sales to India increased by 10% whereas Iraq’s supplies decreased by 8% on a quarterly basis.