India Sees Iranian Oil Premium Amid US Sanctions Waiver
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Traders have offered Iranian oil to Indian refiners at a premium to ICE Brent after Washington temporarily removed sanctions to ease the energy crisis caused by the U.S.-Israeli war on Iran, three industry sources said.
India, the world's third-biggest oil importer and consumer, has not received a cargo from Tehran since May 2019 after it came under U.S. pressure not to buy Iranian crude.
Its refiners have a month to maximise purchases of oil and liquefied petroleum gas from Iran that is geographically close to India, the sources said.
Indian refiners have already bought millions of barrels of Russian oil after the U.S. lifted sanctions on it to try to curb the surge in oil prices.
Iranian oil has been offered at a premium of $6-$8 per barrel over ICE Brent, with payment settled within seven days of cargo arrival.
Indian refiners want to be sure about the payment mechanism before signing any deal with NIOC as Iran is cut off from the SWIFT payment system, they added.
