Refineries Struggle to Find Insurance
Reuters reported from New Delhi today that Indian refiners are set to
halt all crude imports from Iran because they might no longer have the
insurance coverage to process Iran crude due to sanctions.
“If cover is not available then all Indian refiners will have to halt
imports from Iran or else they will have to take a huge risk,” P.P. Upadhya,
managing director of Mangalore Refinery and Petrochemicals Ltd (MRPL), told Reuters.
“Insurance companies said if I buy Iranian crude my refinery's insurance cover
will be cancelled ... If we don't get insurance for the refinery then we will
stop buying Iranian crude.” (Reuters, 8 March)
MRPL
is India's biggest buyer of Iran crude. India is Iran's second-largest buyer,
importing a quarter of its oil exports from Iran worth around $1 billion a
month. In the first 10 months of the current fiscal year, India reduced Iran
crude imports by nearly 22 percent on the year.
“Iran imports will be stopped soon… As far as insurance is concerned, we are all sailing in the same boat,” an official at Hindustan Petroleum Corp (HPCL), Iran's third-biggest Indian buyer, told Reuters.
It was not immediately clear why the insurance coverage has become the issue now, several months after Europe and the U.S. introduced the related sanctions.
File photo: Iran's oil export terminal at Kharg (Getty Images)
9 comments:
Absolute nonsense. India in reality is increasing oil imports and trade with Iran. There are now over 10,000 Iranian post-graduate students in India alone.
The real story even in Zionist media is about increasing oil exports to both India and China.
India increased its imports of Iranian oil to become the Islamic Republic's largest customer last month. Iran's oil sales to Asia increased by about $7 billion in 2012.
Two points:
1. This post is based on what the Indian refiners have told Reuters this morning. Notwithstanding the presence of a large number of Iranian graduate students in India, the story is about the difficulties the Indian refiners are facing to get insurance coverage for Iranian crude. What does Zionism have to do with this?
2. We are entitled to our opinions, not to our facts. You are saying Iran actually increased its exports to Asia in 2012 by $7 billion. Where did you get your figures? Would you share them with us? IEA reports show across the board reduction in Iranian oil exports to Asia in 2012. In India, subject of this post, the imports fell by more than 20 percent.
Better, Iran should save its oil for the future for higher price. Lets this stupid people depends themselves 100% to Saudis oil and when Saudis go into a revolution, war etc they will be the ones who regret. Eventually Iran can survive without selling oil and in fact this force us to become independent of oil which is good thing.
If the sanctions are lifted, should Iran still refuse selling oil, waiting for Saudi meltdown and for becoming independent of oil?
Actually I, personally, think yes. We should just export products not oil/gas. However, since the government in Iran is inefficient and lazy and want oil money these sanctions are opportunity to force those in the government to start making the economy independent of the oil. Under pressure many impossibles become possible;
what products? pistachios? metals? carpets?
Iran doesn't manufacture much and hardly any of it is world-class.
Iran export around or more than 40 Billion$ non oil product (assuming petrochemical are non-oil which is sort of correct since they have been processed) We have around 60$ billion import so the gap is not that big and can be filled in several years with some efforts
and nuts, metals and carpets are the largest exports unrelated to oil and gas and their by-products.
here's the list. there are no manufactured consumer products until far down the list and exports of some cars..at #22...far behind ...grapes.
http://countries.bridgat.com/Top_Products_Exported_by_Iran.html#.UTqKyjDrxnN
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