Iraq is ahead of Saudi Arabia as the largest source of heavy oil to India

2016/7/19 13:00

Oan- follow-up]

Iraq's progress to the Kingdom of Saudi Arabia and robbed of the position for the first time as the largest supplier of oil to India in the quarter that ended in June with the support of heavy crude sales discounted price you need the refineries to produce bitumen, which is used in road construction in the third-largest oil consumer in the world.

Traditionally, that tops the list of crude suppliers of Aramco, Saudi Arabia's state-owned oil to India has been facing pressure from Riyadh to provide the largest reduction on crude prices to regain market share, especially ahead of the planned listing of the company on the stock exchange.

Iraqi oil and accounted for about 20 percent of India's imports in the second quarter, up from 16 percent a year ago, according to sources in the sector and tracking data traffic.

Saudi Arabia's share in the Indian market fell during that period to about 18 percent from 20 percent last year, making Iraq outperforming the UK for the first time in a quarter full.

And increasing demand for heavy Iraqi Basra crude by Indian refiners have since put up the kind of crude last year.

And a lot of Indian refineries have the capacity to address these heavier types of crude, which also sold a large reduction in the price of crude compared to other types.
In addition, the heavy-Basrah also good for the production of bitumen, which is used in road construction.

India is trying to build roads along the 40 kilometers [25 miles] per day during the current fiscal year as part of Prime Minister Narendra Modi's efforts to improve the infrastructure.
Said PK Namdio head of the refinery sector HPCL in reference to the versatility of Basra crude and heavy competitive price, "When you compare other types of heavy competition crude find in the first place."

However, the demand for Basra crude is likely to fall temporarily separated during the current monsoon rains in India, when the road construction is slowing down.
Namdio said that refineries could become a crude types of competition such as Murban Arabian light crude.

In the April to June quarter, India's imports of crude from Iraq rose by 34 percent to 847 thousand barrels per day, while the volume of imports from Saudi Arabia amounted to 768 thousand barrels per day, according to the data shown.

But in June alone, Indian Oil exports from Iraq have fallen by about 13 percent over the previous year, where Saudi Arabia has regained its place at the top of the list of suppliers in that month.
But officials in the Indian refining companies said that the loading problems contributed to reduce oil imports from Iraq, demand is expected to return after the end of the monsoon period in September.