Iran rushes to sell oil to India after Trump sanctions waiver - all you need to know
Iran hopes to make the most of the temporary reprieve that could allow it to restart exports. (AI image) Iran sells hard Importance of Strait
Iran hopes to make the most of the temporary reprieve that could allow it to restart exports. (AI image) Iran sells hard Importance of Strait of Hormuz for global oil flows Will India buy? Will China be the only buyer? Asia’s crude supply already secure? With the Donald Trump administration announcing a 60-day waiver for Iran’s petroleum products, Tehran is reportedly rushing to sell oil to some of Asia’s biggest crude buyers, including India.For years, sanctions restrictions forced Iran to direct most of its oil exports to China. With the temporary easing of restrictions, Tehran is now seeking to diversify its customer base while also finding buyers for crude currently stored aboard tankers.Data from Vortexa, combined with Bloomberg calculations, show that around 68 million barrels of crude and condensate were floating at sea as of June 22. More than 80% of that volume does not appear to have a confirmed destination, potentially making it available for sale.The key question now is: Will Indian refiners buy from Iran? Could other Asian importers outside China return to the market? Is there any possibility of interest from European or even US refiners?According to a Bloomberg report, Iran hopes to make the most of the temporary reprieve that could allow it to restart exports and reduce a growing stockpile of oil cargoes at sea even as broader peace negotiations continue.Traders familiar with the discussions, intermediaries and officials linked to the Iranian Oil Co. began reaching out to refiners in countries including India, Japan and South Korea even before the waiver was formally approved, the report said.The discussions have not been limited to immediate cargoes.
Traders said Iran is also exploring the possibility of longer-term supply arrangements as it looks to increase production.However, despite the outreach, buyers across Asia are not showing any urgency to return to Iranian crude, according to the traders. Many refiners have already secured alternative supplies after adapting to the prolonged disruption of shipping through the Strait of Hormuz.Market participants also remain cautious because of uncertainty over future US policy, while sanctions and restrictions imposed by the European Union and the UK continue to complicate financing and insurance arrangements. In addition, not all ports are willing to receive vessels associated with the so-called dark fleet that has continued transporting Iranian oil, the Bloomberg report said.Indian refiners generally avoid purchasing crude that is potentially subject to sanctions. However, India's proximity to Iran could provide a potential advantage if buyers choose to engage, particularly given Tehran's urgency to secure customers and the limited duration of the current sanctions waiver.Certain cargoes can be delivered to Indian refineries within two to three days, allowing buyers sufficient time to complete transactions during the waiver period.Sumit Ritolia, Lead analyst, Modelling and Refining at Kpler is skeptical that any country other than China will materially increase purchases. One of the biggest reasons for that is that the waiver is, at least for now, only for 60 days.“Given the uncertainty around the Soz and geopolitical risks, most Asian refiners have already been proactive in securing crude supplies. Refinery planning cycles typically run 2–3 months ahead, meaning many refiners have already lined up imports through at least the first half of August,” he says pointing to the narrow window to purchase the crude.Citing the example of Indian refiners, Ritolia noted that they are currently focused on the second half of August and September requirements.“Russian and Middle Eastern grades remain the core of their procurement strategy, while Venezuelan crude continues to gain market share.
The BriefWire