Iran reduces oil export to India by 90,000 bpd (UPDATE)

Oil&Gas Materials 27 July 2011 15:12 (UTC +04:00)

Iran Azerbaijan, Baku, July 27 / Trend D.Khatinoglu/

Iran 's oil export to India reduced by 90,000 barrels of oil per day, the Mehr News Agency reported. The Oil Ministry reported that the reduction is of temporary character.

Iran 's oil export reduced by 90,000 bpd from July 23 due to technical problems in India's oil terminals and problems in auditing occurred 45 days ago. The decline is not linked with the Iranian Oil Ministry's ultimatum to India over debts.

Despite India's debt, Iran continues to export 400,000 barrels of oil per day worth $1 billion per month to India.

The Iranian Oil Ministry reported that the reduction will be temporary and the negotiations to solve the debt issue reached final agreements.

Supposedly, the country will continue to export ordinary volume of oil to India in next month.

Governor of the Central Bank of Iran Mahmoud Bahmani said earlier India's debt over Iran's oil payment is currently $5 billion and Iran attempts to solve the problem of transferring money as soon as possible.

The tension between two countries for oil payment started in December 23 when India's Central Bank (Reserve Bank of India) placed restrictions on transactions with Iran through the Clearing House System (Asian Clearing Union) that Washington believes Tehran has been using to bypass international sanctions.

India has agreed to stop paying for its Iranian oil imports via Germany since the German chancellor Angela Merkel had intervened by instructing Germany's central bank (Deutsche Bundesbank) to stop clearing payments from India headed to the bank, known as EIH, which is under U.S. but not EU sanctions.

Iran is the second-largest crude supplier to India after Saudi Arabia and accounts for about 14 percent of the country's oil import bill.