A360
Key Takeaways✦ Atlas AI
01
India resumes Iranian oil imports.
02
U.S. temporarily lifted sanctions.
03
Global supply disruptions cited.
Atlas AI
India Resumes Iranian Oil Imports
India is scheduled to receive its first shipment of Iranian oil in seven years this week, following a temporary lifting of U.S. sanctions on Iranian crude and refined products. State-run Indian Oil Corp (IOC.NS) purchased the cargo, which is currently aboard the Curacao-flagged very large crude carrier Jaya. The vessel is en route to India's east coast and is expected to arrive by the end of the week, according to ship tracking data from LSEG and Kpler.
The resumption of imports comes after the U.S. authorized temporary deliveries and sales of Iranian oil to alleviate global supply shortages. India, the world's third-largest oil importer, had ceased Iranian oil purchases in May 2019 due to U.S. pressure. However, disruptions to global oil supplies, particularly from the U.S.-Israel conflict impacting the Strait of Hormuz, have prompted Indian refiners to seek alternative sources.
India's oil ministry confirmed last week that refiners had procured Iranian oil in response to the Middle East conflict, which affects approximately 20% of global crude supply. The ministry also stated that payment issues for Iranian oil purchases are not currently a concern. Kpler data indicates that Iranian crude oil held in floating storage is near record levels, exceeding 180 million barrels in April.
