India has increased crude oil demand from Nigeria after it stopped imports from sanction-hit Iran.
This is as new data from the country’s commerce ministry showed that New Delhi has ramped up shipments from Nigeria, Venezuela, United States of America (USA), Iraq and United Arab Emirates (UAE).
Overall, the country’s crude oil imports in June declined 13 percent to 16.9 metric tonnes (MT). In the three months ended June, oil imports dropped 2.29 percent to 55.4 MT.
While oil imports from Iran ceased in June, imports rose 82 percent from Nigeria, 26 percent from Venezuela, 96 percent from USA, 12 percent from Iraq and 66 percent from the UAE.
Interestingly, while the government-owned oil marketing companies (OMCs) have stopped crude oil imports from Venezuela in the light of US sanction, private refiners continue to import crude oil from that country.
“Government-owned OMCs have stopped importing oil from Venezuela since US announced sanctions on the country’s oil company PDVSA. However, it seems that private companies continue to import Venezuelan crude either directly or indirectly,” an executive from one of the three OMCs requesting anonymity revealed.