India’s Reliance Industries, which runs the world’s largest refining complex, has purchased 5 million barrels of Iranian crude oil. This purchase took place just a few days after America lifted the ban on oil for some time. Three sources related to this matter gave this information on Tuesday. Two of these sources said that the Indian refiner has purchased this oil from National Iranian Oil Company (NIOC). A source said that the price of this crude oil was fixed at about $ 7 per barrel more (at a premium) than ICE Brent futures. It was not immediately clear when this oil would be delivered.
Trump had given 30 days relaxation
Iranian oil, which in recent years has been purchased primarily by independent refineries in China, is often rebranded as being from another country. However, no official statement has come out yet on this deal. The Trump administration issued an order on Friday, waiving sanctions for 30 days on the purchase of Iranian oil present in the sea. This exemption will be applicable to oil loaded on all ships (including tankers which are subject to sanctions) which are loaded on or before March 20 and discharged by April 19.
India had stopped Iranian oil in 2019
This deal is the first purchase of Iranian oil by India. India, the world’s third largest oil importer and consumer, had stopped importing oil from Iran in May 2019. This ban was imposed a few months after Washington re-imposed sanctions on Tehran. This purchase took place when Indian refineries bought more than 40 million barrels of Russian crude oil. This purchase was made after the US announced some temporary relaxation in sanctions this month to overcome the supply shortage. Several sources said other refiners in Asia, including Indian government companies, are also exploring whether they can buy Iranian oil. However, Asia’s largest refiner company Sinopec has no intention of buying Iranian oil.