India boosting Iran export of oil
Iran is selling three times more oil to India even as its rival oil-producing nations try to work out a deal to cap their collective crude production.This is more bad news for OPEC which has lost its ability to manipulate the supply of oil to control prices. It is more evidence of just how bad the Obama deal with Iran is.
The Islamic Republic’s oil exports have surged by 600,000 barrels a day since December, the month before the United States and five other western powers lifted strict economic sanctions against Iran.
And so far, India has embraced the country’s return to the market by increasing Iranian imports more than any other country, while Europe’s refiners have been much slower to increase purchases of Iran’s oil, according to Genscape, which tracks oil tanker movement.
“They’ve outperformed what the market expected,” and it’s largely thanks to India, said Amir Bornaee, an analyst at Genscape in the Netherlands, in an interview on Monday. All told, Iran’s exports climbed by 140,000 barrels a day last month, reaching 1.7 million barrels a day, according to Genscape.
Some oil-market analysts believed Iran would fall short of its promise to raise its crude exports from 1.1 million barrels a day exports to 2 million in the first few months after the sanctions were lifted.
But, earlier this month, India reportedly agreed to buy a monthly haul of 400,000 barrels a day from Iran starting in April, which would easily bring Iran’s overseas sales above its short-term target. Reuters reported the deal earlier this month, citing unnamed sources.