India's Reliance Industries has purchased 5 million barrels of Iranian crude oil, marking a notable development in global energy trade, reported Reuters. The purchase comes shortly after the United States issued a temporary waiver on sanctions, according to sources familiar with the matter.
First deal since 2019
The deal is significant as it represents India's first import of Iranian oil since May 2019. At that time, India had halted purchases following the reimposition of US sanctions on Tehran.
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Reliance, which operates the world's largest refining complex, is said to have sourced the oil from the National Iranian Oil Company (NIOC). Two sources confirmed the transaction, though details regarding delivery timelines remain unclear.
Pricing and supply details
One of the sources indicated that the crude was purchased at a premium of around $7 per barrel over ICE Brent futures. Iranian oil, which has largely been routed to Chinese independent refiners in recent years, is often rebranded to appear as originating from other countries.
Reliance did not respond to queries, while NIOC could not be reached for comment, informed Reuters.
Impact of US waiver
The purchase follows a 30-day sanctions waiver issued by the US administration. The waiver allows the purchase of Iranian oil already at sea, provided it was loaded on or before March 20 and delivered by April 19.
This temporary easing of restrictions appears to have opened a window for refiners to access Iranian supplies amid ongoing market adjustments.
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The move also comes as Indian refiners have increased crude purchases from other sources. Earlier this month, they acquired more than 40 million barrels of Russian oil following a similar waiver aimed at easing supply pressures.
Other Asian refiners are reportedly assessing similar opportunities. However, China's Sinopec has indicated that it does not plan to buy Iranian oil at this stage.
The development reflects shifting dynamics in global oil trade as refiners respond to evolving supply conditions and policy changes.
