Reliance Buys 5M Bbls Iran Crude, First Indian Import Since 2019

COMMODITIES

Overview

Reliance Industries has reportedly purchased 5 million barrels of Iranian crude oil, marking India's first such import since May 2019. This move follows a 30-day US sanctions waiver on oil in transit. The deal was priced at a premium, but other Indian refiners express caution due to operational and regulatory concerns.

Reliance Secures Landmark Iranian Crude Deal

Reliance Industries has agreed to buy 5 million barrels of crude oil from Iran. This marks India's first import of Iranian oil since May 2019, when the country stopped purchases following renewed U.S. sanctions on Tehran.

Waiver and Pricing

The deal benefited from a rare 30-day U.S. waiver, allowing transit for oil loaded by March 20. Sources said the cargo, from the National Iranian Oil Company, was priced about $7 a barrel above ICE Brent futures. This purchase comes amid global supply worries and recent large buys of Russian crude by Indian refiners.

State Refiner Hesitation

Despite the waiver, India's state-run refiners are reportedly hesitant to make similar purchases. They have concerns about operational, financial, and regulatory challenges. Issues with shipping, insurance, and payments, along with the waiver's short lifespan, pose risks that could lead to sanctions if deliveries go past the April 19 deadline.

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