India’s oil imports from Iran increased by some 5 percent between March 2018 and March 2019 compared to the previous fiscal year through March 2018, because Indian refiners rushed to buy Iranian oil before the U.S. sanctions kicked in November and hurried to wind up purchases ahead of the waiver expiring early next month.
According to preliminary data for tanker arrivals, obtained by Reuters from industry and shipping sources, India’s imports of Iranian oil rose to around 479,500 bpd in the 2018/2019 Indian fiscal year ended last month, compared to some 458,000 bpd that Indian refiners imported in the 2017/2018 fiscal year.
Between April and October 2018, India’s refiners were buying more than usual Iranian oil because none of Iran’s oil customers were certain that it would get a U.S. sanctions waiver to continue purchases from Iran after the sanctions were re-imposed in early November 2018. Another major reason for increased Indian buying of Iranian oil before November was that Iran was offering very attractive terms to Indian buyers, including almost free shipping and an extended credit period for payment.
According to the data obtained by Reuters, India’s imports of Iranian oil jumped to 405,000 bpd in March 2019, up by 56 percent from February 2019.
Refiners want to make sure they wind down payments before the waivers expire, while a shortage of ships moved some cargo loadings to the end of February with arrival in India in March.