Iran Is Targetting Indian oil market

Why Oil-Rich Iran Is Eyeing India As Clock trice Down On Sanctions Iran poised to resume usual business ties with the world under a historic nuclear deal, Tehran has set eyes on Indian oil market, and old partners in Europe with hundreds of thousands of barrels of its crude. Tehran plans to lift exports by 500,000 barrels per day (bpd) post-sanctions and gradually raise shipments by the same amount again, adding to a glut of global oil Indian crude demand is growing faster than other Asian countries. Like our competitors, we see this country as one of the main targets for Asian sales," said the official, who spoke on condition of anonymity. and likely putting more pressure on oil prices which have already dropped 70 per cent since 2014 to around $30 per barrel. ran already trades limited amounts of oil mainly with Asian buyers legitimately under sanctions, but its crude exports have fallen to just over 1 million bpd, down from a peak of over 3 million bpd in 2011, pre-sanctions. The Iranian official said Tehran planned to revive supply deals with European partners in order to ramp up exports. Prospects for exports to the Americas, never a significant market for Iran, appear slim. Not only do US sanctions unrelated to the nuclear issue remain in effect, but the region is already inundated with supply from soaring US and Canadian production. Latin American suppliers who produce similar heavy crudes have been seeking new buyers in Asia. Within the Middle East, traders said Iran's main competitor would be Iraq, which has successfully returned to Asian markets in recent years, with exports rising above 3.5 million bpd. In Europe, traders said Iran's crude would compete mainly with Russian Urals grades, which are competitively priced. ran does have light crudes, but needs them for itself to reduce gas imports. Either way, Iran adding to an oversupplied global oil market is bound to put more pressure on prices. I n a cut-throat market, Iran may also find it difficult to sell its oil as the heavy grades it mostly offers are in low demand.