In an interview to CNBC-TV18, Paul Hickin, associate director, said that in many aspects, the oil markets are going to be tighter.
S&P Global Platts on April 23 said the China factor will determine the amount of shortfall India will see from Iran crude after America's decision to impose sanctions on buyers of Tehran oil.
In an interview to CNBC-TV18, Paul Hickin, associate director, said, "In many aspects, the oil markets are going to be tighter. We have already seen that Saudi Arabia, UAE and some of the OPEC would probably meet some of the shortfalls that are likely to come off from the increasing Iran sanctions. It means that the market is going to be more vulnerable to wild cards that are going to happen in the markets."
"We have seen that India has already been making indications that they are going to buy alternative sources to Iranian crude - like Saudi crude, UAE, Russia, those sort of crudes. However, the question really is of the key consumer which is China. According to our statistics, China bought around 600000 barrels per day of crude last month and they are going to be reluctant to part with all that and find alternative sources to that."
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .