Reliance Buys 5 Million Barrels Of Iranian Oil, First Deal Since 2019 Sanctions Pause

New Delhi/Singapore: India’s Reliance Industries has bought 5 million barrels of Iranian crude oil, according to a Reuters report citing three sources. The deal comes days after the United States issued a temporary waiver easing sanctions on Iranian oil.

The waiver allows oil already loaded on ships before March 20 to be delivered by April 19. This short window has opened limited buying opportunities for refiners facing supply concerns.

Pricing and Supplier Details

As per Reuters, the crude was purchased from the National Iranian Oil Company (NIOC). One source said the oil was priced at a premium of about USD 7 per barrel over ICE Brent futures.

Details about delivery timelines are not yet clear. Reliance did not respond to queries, and NIOC could not be reached for comment, Reuters reported.

India’s First Purchase Since 2019

This marks India’s first purchase of Iranian oil since May 2019, when imports were halted after the US reimposed sanctions on Iran.

Iranian oil has largely been bought by Chinese independent refiners in recent years and is often rebranded to avoid sanctions-related scrutiny.

Shift Amid Supply Concerns

The purchase comes as Indian refiners have been actively securing crude supplies. Earlier this month, they bought over 40 million barrels of Russian oil following another temporary US waiver to ease global supply tightness.

Other Asian refiners, including Indian state-run firms, are also exploring similar deals, sources told Reuters.

Mixed Response from Asia

While some refiners are considering Iranian crude, not all are interested. Reuters reported that China’s Sinopec, Asia’s largest refiner, does not plan to buy Iranian oil under the current conditions.

The move highlights shifting dynamics in global oil trade as refiners respond to changing geopolitical and supply factors.