India lowers oil imports from Iran fearing US sanctions

Indian oil refineries have considerably cut their imports of Iranian oil in June in a bid to avoid the US sanctions which will come into effect in November 2018. The recorded cut was 16 percent as compared to May thus bringing down the number to 592,800 barrels per day.

Trump administration has pulled out from the JCPOA which was reached between P5 powers and Tehran under which Iran had committed to stop its nuclear enrichment process in return for lifting of economic sanctions. The Indian Government has also said to have asked the major refiners of the country to stay prepared for severe reductions in oil imports or even zero oil imports from Iran in future.

The first major reductions will happen in August while the ones in petroleum sector will take place in the petroleum sector after a wind-down period of 180-days which will end in November 04.

The latter is the result of the push from US administration to countries which import oil from Iran.

The above figures are despite the fact that Indian oil imports increased last month to 10.1 percent from 4.82 million barrels per day primarily due to higher intake from Mexico, Azerbaijan and US in addition to increase in imports from Middle-East.

US withdrawal from the Iranian Nuclear Deal was basically due to the sunset clauses which President Trump wanted to be revised. US also wanted to push for reduced regional influence of Iran in the Middle-eastern affairs in return for staying in the pact.

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