igPic
Iran rejects selling cheap oil to India
6/18/2013 10:08:11 AM
Some psychological moves have been started to damage Iran’s oil exports and force Iran to sell crude oil at low prices, Khatibi said, adding that Iran is selling oil based on official selling prices (OSP) to different buyers in Asia, Europe, and Africa.
 
On Friday, the Indian oil minister said crude oil from Iran costs India $2 less per barrel than global prices, outlining the reasons for the country's desire to source oil from sanctions-hit Tehran.
 
"Our refiners enjoy much better margins. The cost is $2 less ... that's why we are seriously engaging with Iran," M. Veerappa Moily said.
 
Brent crude was trading at $105 a barrel on Friday while U.S. oil was at $96.75.
 
In a move that has both commercial and strategic implications, India is looking to increase its oil imports from Iraq even as it continues to reduce its dependence on Iran oil, HT reported.
 
The energy ties will be top among the agenda of Indian external affairs minister Salman Khurshid's visit to Iraq on June 19 and 20. 
 
According to latest official statistics, in the year 2012-13 (ending March), India's import dipped by over 26.5% to 13.3 million tons, compared to 18.1 million tons the year before.
 
Also in 2012-13, Iranian supplies accounted for 7.2% of India's oil imports, down from 10.5% in the previous year.
 
"There are issues related to payments as well as the insurance issues faced by oil refineries due to the sanction (in Iran). That's why the import is down," an Indian government official said.