Reliance buys 5 million barrels of Iranian oil after US waiver, sources say

NEW DELHI/SINGAPORE: India’s Reliance Industries, operator of the world’s biggest refining complex, has purchased 5 million barrels of Iranian crude, days after the U.S. temporarily removed sanctions on the oil, three sources familiar with the matter said on Tuesday.

The Indian refiner bought the oil from the National Iranian Oil Co., two of the sources said.

One of them said the crude was priced at a premium of about $7 a barrel to ICE Brent futures. It was not immediately clear when the oil would be delivered.

Iranian oil, which in recent years has mainly been bought by Chinese independent refiners, is often rebranded as originating from another country.

Reliance did not respond to emails seeking comment. NIOC could not be reached for comment.

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The Trump administration on Friday issued a 30-day sanctions waiver for the purchase of Iranian oil already at sea. The waiver applies to oil loaded on any vessel, including tankers under sanctions, on or before March 20 and discharged by April 19.

The deal marks India’s first purchase of Iranian oil since the world’s third-biggest oil importer and consumer halted imports from Iran in May 2019, months after Washington reimposed sanctions on Tehran.

The purchase comes after Indian refiners snapped up more than 40 million barrels of Russian crude after the U.S. announced atemporary sanctions waiver this month to ease supply shortages.

Other Asian refiners including Indian state firms are making checks to see if they can purchase the oil, several sources have said. However, Asia’s top refiner Sinopec does not intend to buy Iranian oil, a senior executive at the Chinese state giant said on Monday.