Thursday, July 21, 2011

India to Seek Saudi Crude as Iran Warns of Cutoff

Bloomberg's, quoting informed sources, is reporting that Indian refiners are seeking Saudi crude as Iran warns of an impending cutoff of its oil deliveries to the country. Iran has said in recent days that it will cutoff all deliveries by August 1 if India could not find a way to settle its outstanding bills totaling more than $5 billion. Indian refiners say the economic sanctions against Iran have made banks unwilling to transfer funds to Iran.

“Indian refiners asked Saudi Arabian Oil Co. [Saudi Aramco] for at least one additional shipment in August as a payment dispute jeopardizes Iranian cargoes, four people with knowledge of the matter said yesterday,” Bloomberg BusinessWeek said [, 20 July].

“Iran hasn’t yet given Indian refiners loading dates or shipping amounts for August, three of the people familiar said yesterday. Iran typically provides this information by the middle of each month for the following month’s supplies, they said,” the report added.

India imports more than 20 million metric tons of crude from Iran annually, at a value of nearly $10 billion, making it the country’s second-biggest supplier after Saudi Arabia.


Anonymous said...

Saudis can't deliver on the long run unless they screw it with the Opec.

and from the 14 fields half are not producing.. not because they cant but becaus ethere is no more oil tu pump..

Gifted one said...

hahaha, these Indians are killing me with laughter. Maybe they think international relations is like Bollywood, all song and dance with little substance.

They are about to get a hard lesson in geopolitical, and economic reality.

Ridiculous country, they should ask the Chinese or the Japanese how they manage to pay for Iranian crude, or ask the Austrians how they still pay for Iranian gas.

Anonymous said...

HA!!! Finally,there we have it.The true face of India revealed. :) Wonder what took them so long?

This whole thing was engineered by,you-know-who, to reach this end.They just needed an excuse to stick it to Iran and the "payment issue" was a perfect one.They still have to pay their outstanding debt though.Unless of course they don't intend paying that too - which is a different ball game altogether.

They can now buy oil at much discounted prices from the Saudis.The Saudis are basically giving away their oil for free.Dig that!!!With instability in Yemen and Bahrain slowly heading their way and a definite power struggle after the soon-tobe-dead king is gone, I wouldn't put my hopes too high.
India's really playing dice with their economy.

Any wonder why India will never become China?They're just not that disciplined enough.By all accounts, they're still a "third world" colonial construct with an inflated sense of importance.

Take away Mumbai and New Delhi and India is still a very poor country - in fact, much poorer than the all of Africa combined.Hilary's done a pretty good job with her recent trip there.Good luck!!

Now Iran needs to diversify her economy from oil dependent to non-oil based economy.It's a difficult task but doable task.

Anonymous said...

India did this as punishment for the recent Iran-Pakistan gas pipeline agreement which China's also expressed some interest.

India will slowly be kicked out of the central Asian energy loop.Afterall, that's what the Afghanistan war's all about - PIPELINES!

Anonymous said...

The more reason Iran needs to move from oil based economy to other sources. Oil has always been a curse to those that posses it.

Anonymous said...

Indian Hindus have a historical inferiority complex vis a vis Iran as they were ruled by the Persian/Turko Moghuls for over a 500 years.

Nader Shah's strategic brilliance and the punitive foray into India in 1738, and return to Persia in 1739 with the original Peacock Throne as well as many other treasures underlined Persian dominance of the Indian sub-continent. This has left an indellible mark on the Hindu psyche and their ingrained traits of backstabbling and Islamophobia.

Iran should always stick with Pakistan, as even under Mohammed Reza Iran recognized the value of Pakistan as a strong buffer against India. Secondly, more than half of Pakistan's population (Pashtuns and Baluch)along with 25% Shia population are of Iranic origins along with their national langauge Urdu which is basically Farsi interlaced with Turkish and Sanskrit.

Recent visit by Hillary to Delhi was a further attempt to push India into a anti-Iran stance as US/Zionits try to economically strangle Iran. Furthermore, US relations with Pakistan are getting worse by the hour and will eventually fracture as even the corrupt Pakistani military/political classes are tiring of US interference, Islamophobia and regional destabilization efforts.

The back to back visit by Zardari (a Shia himself) to Tehran and meetings with the highest levels of Iranian government, including Sayed Ali Khamenei, Ahmadinejad and Larajani symbolize the rapidly emerging Iran-Pakistan historical strategic axis. Iranians should never lose sight of the fact that it was the Pakistanis who assisted in the development of the Iranian nuclear program as well as many other joint military projects including the operationalization of the Mirage F1 EQ (involuntary gifts from Saddam, that are now based in Mashad.

Many IRIAF pilots have been trained at the PAF (Pakistani Airforce Academy) at Risalpur along with a whole brigade of Iranian special forces that served in Pakistani Baluchistan from 1973-1977.

Iranian-Pakistani ties are rapidly growing to their pre-revolutionary collaboration as power dymanics in South-west Asia shift and both Iran-Pakistan move closer to China, the resurgent superpower in the Asia centric millenium.

India is far more vulnerable than it realizes as its fragile poverty stricked and unstable federation is beset with political instability and armed insurgencies from Assam in the east to Muslim Kashmir in the west.

Antagonizing Iran is not in India's best economic or strategic interest. Indians will turn out to be the ultimate losers in the long-run.

Anonymous said...

much oil is in my country (Mexico) and very stupid damn trallendolo other corruption makes everything so.

Anonymous said...

Are they stupid enough to source all their oil from a single country? A flower revolution in Riyadh and they will be quite screwed up...

Anonymous said...

Iran has no choice. Indians are trying to be zerang and get oil while contriving "sanctions" excuses to not pay for it. If there are sanctions then don't buy it in the first place. Iranians prefer chinese to indians any way.