Traders Offer Indian Refiners Iranian Oil at Premium
Traders offered Iranian oil to Indian refiners at a premium following a temporary U.S. sanctions waiver. Refiners are now weighing payment options to address domestic energy shortages.
Traders have begun offering crude oil from Iran to refiners in India at a significant premium to ICE Brent. This development follows a temporary easing of sanctions by the United States intended to mitigate a global energy crisis exacerbated by the ongoing conflict involving Israel. India, which ranks as the world's third-largest oil consumer, has not imported Iranian crude since May 2019 due to previous American diplomatic pressure. However, the disruption of shipping routes through the Strait of Hormuz has forced a shift in strategy. Industry sources in Singapore and New Delhi indicate that refiners now have a narrow 30-day window to maximize imports of oil and liquefied petroleum gas, such as those provided by Dorian LPG Ltd., from geographically proximate sources.
