Iraq overtakes Saudi as biggest oil exporter to India for April

Iraq accounts for 22% Indian oil imports compared to Saudi's 18% Image Source: IANS

Iraq overtook Saudi Arabia as the top crude oil exporter to India in April for the first time since December, according to data compiled by Reuters, as the two biggest OPEC producers fight for market share in Asia's fastest growing oil market.

Saudi Arabia also lost its top spot in China, Asia's biggest oil consumer, last month when Russia overtook the world's biggest crude exporter due to strong purchases by Chinese independent refineries.

Overall, April oil imports by India rose 6 % from March and are up 9.9 % in the first four months from a year ago. For the first four months of 2015, imports fell 0.6 % from a year ago because of refinery outages.

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Iraqi oil exports to India were 960,700 barrels per day (bpd) in April, a 41 % jump from March and 79 % higher than a year ago, data obtained by Reuters and compiled by Thomson Reuters Oil Analytics showed.

India imported about 787,700 bpd of oil from Saudi Arabia last month, about 14 % lower than a year ago, the data showed.

Iraq accounted for 22 % of April Indian imports, up from about 15 % a year ago, while Saudi Arabia's share dropped to 18 % from about 25 % a year ago.

"Iraqi oil is much more beneficial than Saudi because they are better priced. There is a significance difference in prices," said A. K. Sharma, head of finance at Indian Oil Corp.

Iraq has consistently maintained their official selling prices (OSP) below Saudi Arabia. In April, Iraq set the OSP for its flagship Basrah Light crude at a discount of 2.60 a barrel to Middle East benchmarks, 20 cents under the OSP for comparable crude grade Arab Medium.

Overall, Indian crude oil demand rose in 2016 as refiners normally avoid maintenance shutdown in the first quarter to meet annual crude oil processing target for the fiscal year.

Also, Indian Oil Corp, the country's biggest refiner, boosted imports after commissioning the 300,000-bpd Paradip refinery.

Iran is also raising its share in Indian imports. The country accounted for about 9 % of overall purchases in April compared to about 7.2 % a year ago.

Overall in January to April, Iranian oil accounted for about 7.4 % of Indian imports from about 4 % a year ago, becoming fifth-largest oil supplier to India compared with the eighth position a year ago.

On the losing side, Latin American suppliers exported 8.2 % less crude to India during January to April. The region`s share in Indian imports declined to about 16 % from about 19 % a year ago as its oil has become uncompetitive in the ongoing price war.

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