India has finally shoved crude oil from Nigeria and Saudi Arabia aside as it opted for supplies from Iraq during the June quarter .
In a report by Reuters , Saudi Aramco may be facing price cuts to crude oil in a bid to regain market share as Iraqi oil imports saw a 16 percent increase in India from a year ago. Saudi market share fell to about 18 percent , and OPEC ’s top producer is seeing similar competition in other markets , notably from Iran.
The report says imports from Iraq rose by about 34 percent to 847,000 barrels per day with Saudia Arabia falling to about 768 ,000 barrels per day in the April- June quarter .
According to the report , Iraq’ s Basra Heavy Crude has been a key instrument in producing bitumen for roads and India is aiming to build 25 miles of road every day throughout the fiscal year as part of an effort to improve the country ’ s roads.
Reuters does note , however, that India’s monsoon season could slow road construction and subsequently slow the demand for Basra Heavy Crude . Indian officials say Iraqi oil imports will recover from a 13 percent decline in June alone once the monsoon season ends in September .
India had indicated some months ago that it would dump Nigerian crude due to uncertainties occasioned by attacks on Africa ’s largest economy’ s oil industry by Niger Delta militants .
India’ s HPCL was forced last month to cancel a vessel it chartered to carry two million barrels of West African crude due to the Qua Iboe force majeure.
India’ s state -run Indian Oil Corp. Ltd – a major buyer of Nigerian grades over the past year – has stated in its recent tenders that it would not take grades under force majeure. Qua Iboe remained off the list in its latest tender, according to a document seen by Reuters , an extremely unusual development in its requests for sweet crude.
https://newtelegraphonline.com/india-opts-for-iraqi-crude-dumps-nigeria-saudi-arabia/

Hmm

Hmmm. Trouble dey oo