India plans to resume purchases while other Asian refiners explore options after a 30-day US waiver unlocks millions of barrels of sanctioned crude.

NEW DELHI/SINGAPORE: Indian refiners plan to resume buying Iranian oil while other Asian processors are examining the move. This follows a temporary US sanctions waiver aimed at alleviating a regional energy crunch.

The Trump administration issued a 30-day waiver for Iranian oil already at sea. US Treasury Secretary Scott Bessent announced the measure on Friday.

The waiver applies to oil loaded on any vessel on or before March 20 and discharged by April 19. It marks the third temporary sanctions relief since the start of the US-Israeli war on Iran.

About 170 million barrels of Iranian crude are currently at sea. Kpler’s senior manager for crude oil market data, Emmanuel Belostromo, provided the figure.

This volume is scattered on ships from the Middle East Gulf to waters near China. Consultancy Energy Aspects had estimated 130 million to 140 million barrels on water earlier in the week.

Three Indian refining sources said they will buy the oil and await government directions. They also seek clarity from Washington on details like payment terms.

India has much smaller crude stockpiles than other major Asian importers. The country recently rushed to book Russian oil after a similar temporary US sanctions lift.

Other Asian refiners are making checks to see if they can purchase the oil. Several people with knowledge of the matter confirmed the activity.

Potential complications include uncertainty over payment methods. A large share of the oil is also aboard aging shadow fleet ships, traders said.

Some former purchasers were contractually obligated to buy from National Iranian Oil Co. However, Iranian oil has been sold largely by third-party traders since 2018.

“It usually takes some time to work through compliance, administration and banking, etc., but I guess people will try to work ASAP,” a Singapore-based trader said.

Asia relies on the Middle East for 60% of its crude supply. The near-closure of the Strait of Hormuz is forcing regional refineries to run at lower rates.

China became Iran’s main client after the 2018 sanctions re-imposition. Its independent refiners bought 1.38 million barrels per day last year, attracted by deep discounts.

Major buyers before the 2018 sanctions included India, South Korea, Japan, and several European nations. The sources declined to be named due to company policy.

 The Sun Malaysia