The return of the U.S. sanctions on Iran has tightened the oil industry. The oil importing countries across the globe are concerned about the regular supply of crude once the sanctions on Tehran kicks in starting from early November. To help the country to make up the shortfall of oil supply from Iran, the oil major Saudi Arabia has stepped in to supply crude for Indian oil buyers.
The world's biggest oil exporter - Saudi Arabia will be supplying an additional four million barrels of crude to Indian oil buyers in November. The extra supply of crude indicates Saudi's willingness to up the oil output once the U.S. Sanctions on Tehran comes into effect. India and China are the top oil importers from Iran for crude.
The United States of America has upped pressure on most of the oil importers across the globe to trim down their oil imports from Tehran and bring it to zero and this, in turn, has led to the reduction in oil exports of Iran which is currently at 1.1 million barrels per day (BPD) of crude during the first week of October.
India's oil refinery companies - Hindustan Petroleum Corp, Bharat Petroleum Corp, Reliance Industries Ltd and Mangalore Refinery Petrochemicals Ltd are looking for an additional 1 million barrels each from Saudi Arabia during November.
Refiners in India have placed orders to purchase 9 million barrels of crude from Iran in November. Several refiners have backed off from buying Iranian barrels owing to sanctions.