Report: After Trump Scrapped Nuclear Deal, Huge Indian Energy Company Cut Oil Imports From Iran

According to an exclusive report from Reuters, a huge Indian energy company cut its oil imports from Iran in June virtually in half after President Trump scrapped the nuclear deal with Iran in May.

Reuters quoted three sources asserting that Indian refiner Nayara Energy, formerly known as Essar Oil, cut its Iranian imports from 5.5-6 million barrels a month to 3-4 million barrels a month. One source told Reuters, “Nayara will be lifting about 40-50 percent less than the average volumes, limiting its intake of Iranian oil to about 3-4 million barrels in a month.”

According to Iran’s Oil Ministry’s news agency SHANA, Iran’s oil exports reached 2.7 million barrels per day in May. India, the third-largest oil consumer and importer in the world, imports about 4.5 million barrels per day.

When queried by Reuters whether the rumors of a nearly 50% cut in oil imports from Iran were true, Nayara Energy responded, “There are no specific cut-backs planned as of now,” adding “we are still seeking clarifications from all concerned.” Yet last week Nayara’s chief executive B. Anand said Nayara would find other sources if it cut imports from Iran and would leverage the supply and trading network of its major stakeholders, Rosneft and Swiss commodity trader Trafigura, to do so.

If Nayara cuts oil imports from Iran, it would join India’s Reliance Industries, which owns the world’s biggest single refining complex; last month two sources told Reuters that the company would terminate oil imports from Iran by October-November.

The U.S. will likely implement sanctions on Iran’s petroleum industry on November 4.

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