* Total Indian November oil imports down 6% to 4.3 mln bpd
* Imports from Venezuela fell to lowest since April 2012
* Saudi regained top oil supplier status from Iraq
* TABLE-India's Nov oil imports down 6% from Oct.
By Nidhi Verma
NEW DELHI, Dec 23 (Reuters) - Latin America's share of
Indian oil imports plunged in November to its lowest in 20
months, tanker arrival data showed, as refiners bought similar
heavier grades from the Middle East to reduce shipping costs.
India, the world's third largest oil consumer, bought about
390,400 barrels per day (bpd) of Latin American oil during
November, or 9.1% of the country's total imports, down from 12%
in October, the data from shipping and industry sources showed.
"Freight rates peaked in October 2019 and that prompted
refiners to go for short-haul crude like from the Middle East,"
Ehsan Ul Haq, an analyst with Refinitiv, said.
India's overall imports from the United States, Canada, and
Africa also declined from October, the data showed. L4N28X2R8
Freight rates surged in October after nearly 300 oil tankers
globally were placed off limit by oil firms and traders for fear
of violating U.S. sanctions against Iran and Venezuela.
Middle Eastern oil accounted for 68% of India's imports in
November, up from 57% in October, the data showed, with Saudi
Arabia regaining its status as top supplier a month after losing
it to Iraq. Africa's share fell to 13% from 16.5%.
Overall, India imported about 4.28 million bpd in November,
down 6% from October and 1.2% higher than a year earlier, the
data from shipping and industry sources showed.
The sources declined to be identified as they were not
authorised to speak with the media.
India's imports from Latin America declined as refiners
restricted purchases from Venezuela to 182,000 bpd, the lowest
since April 2012, according to data compiled by Reuters.
Since the United States imposed sanctions on Venezuelan
state-run oil firm PDVSA in January to oust socialist President
Nicolas Maduro, the OPEC member has struggled to find customers
and tankers for its oil.
More sanctions in August and September on Venezuela and
maritime firms carrying the nation's oil pushed its crude stocks
to record levels, requiring PDVSA to reduce output and halt
blending operations.
Indian imports of Latin American were also hit by declining
fuel oil cracks.
The high-sulphur fuels market has come under pressure as
focus and demand gradually shifts to lower-sulphur alternatives
before a 2020 deadline for the shipping industry to use cleaner
fuel.
The front month 380-cst barge crack to Brent touched a record
low of minus $33.49 on Nov 29. HFOFARAACMc1
"Fuel oil cracks were very low and no body wanted to have
heavier crudes from Latin America. As an alternative to
Venezuela and Mexican oil, the best nearby options are Saudi and
Iraq," said Haq.
TABLE-India's Nov oil imports down 6% from Oct - trade data
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