Nayara says Iran, Venezuela supply cut tightens heavy oil market
India’s Nayara Energy Ltd, part-owned by a consortium led by Russian oil major Rosneft , is scouting for ultra-heavy oil amid tightening supply following U.S. sanctions against Iran and Venezuela, its vice-president said on Tuesday.
“Iran and Venezuela have taken 3.5 million barrels per day (bpd) out of the market,” said Ashutosh S Deshpande, referring to the impact of sanctions restricting supplies from those countries in comments during a panel session at the Asia Pacific Petroleum Conference (APPEC) in Singapore.
“The market for sour (grades) and heavies has become more tight,” said Deshpande. Nayara operates a 400,000 barrels per day (bpd) refinery at Vadinar in India’s west coast.
