Exports Of US Crude Falls As India Turns To Iran Ahead Of Sanctions

Exports Of US Crude Falls As India Turns To Iran Ahead Of Sanctions

US Crude Exports Fall As India Turns To Iran Ahead Of Sanctions (representational image)

New Delhi: According to traders and shipping intelligence firm Kpler, Indian buyers reduced the crude oil purchases from U.S. and loaded up on Iranian oil ahead of the restart of U.S. sanctions next month and as the WTI-Brent differential narrowed. 

Last month, the U.S. oil shipments to India fell to 84,000 barrels per day (bpd), down 75 percent from a record high of 347,000 bpd in June, Kpler data showed. In June, India accounted for 12 percent of U.S. crude exports.

The Indian buyers, last month lifted purchases of Iranian crude to 502,000 bpd, up 111,000 bpd over August, in "a last gasp" of purchases "before sanctions actually hit," a U.S.-based trader said, it also added that those additional barrels displaced U.S. crude.

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A fall was seen in the overall U.S. exports, from 917,000 bpd to 1.7 million bpd in the last week of September, according to the Energy Information Administration, after the US dollar gained a and Brent's premium to WTI fell, the U.S. crude became less affordable.

A key Asian destination for U.S. crude this year, India has been one of the top two buyers of Iranian crude. But since June, the country's refiners have cut purchases of Iranian crude ahead of U.S. sanctions.

Last week, the U.S. exports to all Asian countries fell 73,000 bpd to 427,000 bpd, while in Europe, the U.S. shipments dropped from 102,000 bpd to 543,000 bpd, Kpler data showed.

According to kpler, the Iran's crude exports to China also increased by 29,000 bpd to 620,000 bpd, after China cut its U.S. purchases in the middle of an ongoing trade spat with the US.

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