India oil import costs set to rise as Iran US sanctions kick in
A $10/barrel change in crude oil price results in 50 bps impact on India's current account deficit expressed as a percentage of GDP and 30 bps impact on inflation
US sanctions against Iranian oil exports take effect on 4 November, but the impact is already starting to show. India’s crude oil imports from Iran fell in the first half of August, according to a report by Edelweiss Securities Ltd, citing data from FGE, a global oil and gas consultancy. The accompanying chart has the details. A weaker August comes after a strong July. The US sanctions are expected to make it challenging for India to sustain oil imports from Iran, its third-biggest crude supplier.
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