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India increases Iran oil imports
Tehran Times ^ | 11 Feb 2012 | Economic Desk

Posted on 02/11/2012 7:24:43 PM PST by BlackVeil

Iran's crude oil exports to India have increased 37.5% in January.

India has increased oil imports from Iran to become the Islamic Republic's largest customer last month, ignoring recent sanctions imposed by US and EU on importing Iran’s oil.

According to The Wall Street Journal Iranian crude exports to India rose to 550,000 barrels a day in January, up 37.5 percent from December 2011.

The development, the report said, has partly offset a 50 percent cut in crude exports to China as a result of pricing dispute. China now imports around 250,000 barrels a day from Iran.

The news comes despite the West’s rising pressure on Iran to halt its peaceful nuclear program.

On the New Year’s Eve, the United States imposed new sanctions against Iran aimed at preventing other countries from importing Iran’s oil and doing transactions with its central bank.

European Union foreign ministers also approved sanctions against Iran’s oil and financial sectors on January 23, including a ban on Iranian oil imports, a freeze on the assets of the country’s Central Bank within EU states, and a ban on selling diamonds, gold, and other precious metals to Tehran.

Although financial sanctions have caused problems with regard to payment for Iran’s oil by other countries, they have apparently not been able to deter India.

Iran's Ambassador to India Seyyed Mehdi Nabizadeh said last Tuesday that India had agreed to pay for some purchases of Iranian oil in Indian rupees, a route that would avoid the risk of an interruption in banking transfers.

Meanwhile, despite a pledge to find alternative supply sources for Iran’s oil, South Africa has also increased its Iranian oil imports to 100,000 barrels a day, The Wall Street Journal quoted an unnamed informed source as saying.

The US, Israel and their European allies accuse Iran of diversion in its peaceful nuclear program and have used this as an excuse to pass four rounds of international sanctions against the country at the UN Security Council.

Refuting the claims, Tehran insists that as a member to the International Atomic Energy Agency and the Nuclear Non-Proliferation Treaty (NPT), it is fully entitled to peaceful applications of the nuclear energy.


TOPICS: Business/Economy; Israel; News/Current Events; Russia; War on Terror
KEYWORDS: china; gold; goldbugs; india; iran; israel; oil; opec; pakistan; russia; waronterror
This is from a state sponsored Iranian newspaper. So one takes that into account when reading it. But I think the general picture about trade with India is correct.
1 posted on 02/11/2012 7:24:56 PM PST by BlackVeil
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To: BlackVeil

India buys 12 percent of its oil from Iran and many of India’s refineries have been built to run on Iranian crude. India pays 45 percent of their imports in Indian rupees — thus avoiding the need to pay in dollars — and might even settle the remainder of the debts through barter

http://www.washingtonpost.com/world/asia-pacific/iranian-envoy-says-india-will-pay-for-oil-imports-partly-in-rupees-to-avoid-western-sanctions/2012/02/07/gIQAvrzCwQ_story.html


2 posted on 02/11/2012 7:27:37 PM PST by U-238
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To: BlackVeil

I wonder if India is paying full market price for that oil?


3 posted on 02/11/2012 7:28:12 PM PST by GAB-1955 (I write books, serve my country, love my wife and daughter, and believe in the Resurrection.)
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To: GAB-1955

I doubt it


4 posted on 02/11/2012 7:29:25 PM PST by U-238
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To: BlackVeil

China, Japan and South Korea are big consumers of Iranian oil.


5 posted on 02/11/2012 7:33:38 PM PST by U-238
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To: GAB-1955

I think India would be getting the oil cheap. Iran needs imports of Indian primary produce, so they arrange a bargain.


6 posted on 02/11/2012 7:37:27 PM PST by BlackVeil
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To: BlackVeil

New Delhi pays $12 billion dollars worth of oil a year


7 posted on 02/11/2012 7:41:14 PM PST by U-238
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To: BlackVeil

It looks like our plan to hurt Iran will backfire and will be another nail in the dollar’s coffin.


8 posted on 02/11/2012 8:14:08 PM PST by FightThePower! (Fight the powers that be!)
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To: BlackVeil

So much for yet another of our so-called “friends”. No wonder Iran laughs at sanctions.


9 posted on 02/11/2012 8:28:03 PM PST by TheBattman (Isn't the lesser evil... still evil?)
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To: TheBattman

You really dont expect countries like China and India, some of the largest markets for oil to just stop buying do you? Why would they do anything to damage their economies? In India for eg, it will be the death of the govt. that increases oil prices as result of not buying Iranian oil. Increase in oil prices equates increase in commodities which are highly sensitive to oil prices in India.
Same thing for China. China cant and will not afford inflation to shoot up for in their country.
In the end every country will look out for itself and one should not be surprised.
Its not as simple as some of you make it out to be.


10 posted on 02/11/2012 8:59:55 PM PST by coldphoenix
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To: TheBattman

You really dont expect countries like China and India, some of the largest markets for oil to just stop buying do you? Why would they do anything to damage their economies? In India for eg, it will be the death of the govt. that increases oil prices as result of not buying Iranian oil. Increase in oil prices equates increase in commodities which are highly sensitive to oil prices in India.
Same thing for China. China cant and will not afford inflation to shoot up in their country.
In the end every country will look out for itself and one should not be surprised.
Its not as simple as some of you make it out to be.


11 posted on 02/11/2012 9:00:10 PM PST by coldphoenix
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To: BlackVeil
IRAN: ITALY MUST RELY ON TEHRAN TO BOOST ROLE IN MIDDLE EAST, DIPLOMAT ["Main trading partner."]
AKI (Italy) ^ | 10AUG06 | AKI (Italy)
Excerpt:
"Italy is Iran's main trading partner in Europe and commercial relations between the two countries were reportedly worth five billion euros in 2005."

IRAN: D'ALEMA, SANCTIONS WOULD ESPECIALLY DAMAGE ITALY
Agenzia Giornalistica Italia, Italy ^ | 26MAY06 | Agenzia Giornalistica Italia, Italy

Iran's commercial ties with Italy growing
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12 posted on 02/11/2012 9:10:41 PM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: BlackVeil

Sanctions will make & have made things difficult by presenting obstacles, but not enough to bring down the regime or stop its nuclear program; if that’s the intention. They might long-term, who knows... but I doubt it.

Iran’s economy has its problem, some more serious than others. Sanctions have naturally limited direct foreign investment in Iran too & there is the usual widespread corruption.

However, the main problems for the average Iranian are unemployment & inflation. Reasons why those Iranians who can are looking elsewhere, especially in central Asia/Asia & the Gulf states such as Oman, UAE, Qatar, etc.. For example, I recently read somewhere that about 20% (perhaps slightly more) of Dubai-UAE’s domestic economy is run by Iranian expats.

Also, Iran has made the development of non-oil exports a priority, and the bonyads (religious foundations) control around 20 to 25% of Iran’s GDP, and contribute to more than 30% of regime’s spending.

In addition to India & China, Russia, Venezuela, Pakistan, S. Africa, Cuba, and Turkey are some of the other major trading partners. Obviously sanctions don’t only affect Iran. This is a customer-supplier relationship, so others as well as Iran will find ways to continue to trade.


13 posted on 02/11/2012 9:25:19 PM PST by odds
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To: odds
Many thanks for such an informative and well stated post.

However, the main problems for the average Iranian are unemployment & inflation.

Too right!

14 posted on 02/11/2012 10:03:02 PM PST by BlackVeil
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To: TheBattman
The result of India stopping the importation of Persian crude oil would be social upheaval caused by runaway inflation and lack of fuel in India. Governments in that country fall every time staple commodities become less affordable. It would be profoundly idiotic to expect the Indian government to perform harakiri on itself by cutting crude imports (for which alternatives cannot be sought unless expensive retrofitting is performed on a whole industry of oil processing plants in the country - Indian refineries are designed largely to process Persian crude which has qualitative properties unique to it).

As for friends, ask yourself which country aids and arms a failed state that's India's principal enemy after China - Pakistan. If you do not know the answer, that country is the United States. American weaponry is what Pakistan uses to shed Indian blood. They don't use F-16s and anti-ship missiles to attack the Taliban Flying Carpet Air Force. In the Indian strategic calculus, a lever on the machinery of Pakistan's neighbour Iran is of extreme importance. This importance will only escalate once America decides to abandon Afghanistan and allow the Taliban to re-establish themselves there (already negotiations have begun with them).

15 posted on 02/12/2012 12:01:30 AM PST by James C. Bennett (An Australian.)
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