US oil exports drop as India turns to Iran prior to sanctions

US oil exports drop as India turns to Iran prior to sanctions

Shipping intelligence company Kpler has said that Indian buyers have reduced US crude purchases, instead turning to Iranian supplies ahead of next month’s US sanctions.

Data from the shipping intelligence firm showed US oil exports to India went from a record high of 347,000 barrels per day in June to 84,000 bpd in September – 12% of total US crude exports.

During the same month, Indian buyers increased Iranian imports by 111,000 bpd from August to 502,000 bpd before US sanctions took effect.

Total US crude exports dropped to 1.7 million bpd in the final week of September, down 917,000 bpd, as a result of a strengthening dollar which contributed to making crude less affordable, according to the Energy Information Administration (EIA).

India became a significant importer of US crude this year but has also been one of the two biggest importers of Iranian crude, although the extent of this has dropped since cutting Iranian purchases ahead of US sanctions.

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