First purchase since 2019: Reliance buys 5 million barrels of Iranian oil after US waiver

Reliance Industries Limited (RIL), which operates the world’s largest refining complex, has purchased 5 million barrels of Iranian crude days after the United States issued a temporary sanctions waiver, Reuters reported on Tuesday, citing sources.

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The cargo was reportedly bought from the National Iranian Oil Co. The crude was priced at a premium of about $7 a barrel to ICE Brent futures, the report said, adding that it was not immediately clear when the oil would be delivered.

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The purchase follows a 30-day sanctions waiver announced by the Trump administration last week, allowing the purchase of Iranian oil already at sea. The waiver applies to oil loaded on or before March 20 and discharged by April 19, including shipments on vessels under sanctions. The move created a narrow window for buyers to access Iranian crude, which has largely been absent from formal markets due to US restrictions.

First deal since 2019 sanctions

The transaction marks India’s first purchase of Iranian oil since May 2019, when imports were halted after Washington reimposed sanctions on Tehran. Iranian crude has in recent years been predominantly sold to Chinese independent refiners, often rebranded as originating from other countries to bypass restrictions.

The Reliance deal comes amid a shift in sourcing by Indian refiners following the waiver. Indian refiners have purchased more than 40 million barrels of Russian crude this month after the US eased sanctions to address supply shortages, the report said.

On Monday, Kpler, a data and analytics firm that tracks global commodity flows and energy markets, said the US decision to grant a 30-day waiver is unlikely to immediately expand the pool of buyers. “While the US decision to grant a 30-day waiver for most countries to buy Iranian oil is aimed at easing prices, the near-term supply response may be limited,” the firm said.

“China remains the dominant buyer, importing 1.57 mbd in February and 1.48 mbd in March to date. Around 30 mb of #crude in Chinese storage could be tapped by state refiners, but ongoing constraints in payments, shipping, and counterparty trust are likely to deter new buyers, keeping flows concentrated through existing channels,” it added.