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Iran Offers India Discounted Oil After Sanctions Waiver
26 Jun
Summary
- Middlemen offer Indian refiners discounted Iranian oil.
- US granted Iran a temporary sanctions waiver for 60 days.
- India previously halted Iranian crude imports in May 2019.
Middlemen and Iran's National Oil Company (NIOC) are actively offering discounted Iranian crude oil to Indian refiners. This comes after the United States granted a 60-day sanctions waiver, creating a brief window for renewed energy trade. NIOC is reportedly marketing its crude at prices $3 to $4 per barrel lower than comparable regional grades on a landed basis.
Despite these offers, Indian refiners face constraints in immediately absorbing additional Iranian crude. Most refiners have already secured supplies through August, and existing Middle Eastern term suppliers are urging adherence to annual contracts. Nevertheless, there's potential for increased imports of Iranian liquefied petroleum gas (LPG), though commercial negotiations may be prolonged due to unclear payment mechanisms.
