Middlemen Offer Discounted Iranian Oil To Indian Refiners
OIL & GAS

Middlemen Offer Discounted Iranian Oil To Indian Refiners

Several middlemen have approached Indian refiners with offers of discounted Iranian crude after Washington granted a 60-day sanctions waiver following initial talks under a nascent peace deal. The approaches have come directly from the National Iranian Oil Company (NIOC) and from intermediaries that claim to have been allocated volumes by the state producer. Refining sources said discussions are confidential and that they are weighing options amid the narrow trading window.

NIOC is indicating to buyers that Iranian crude would be three to four dollars a barrel cheaper than comparable regional grades on a landed basis, and traders are relaying the same message to potential purchasers. The intermediaries contacting refiners are mainly small and mid-sized trading companies based in Singapore and Dubai, according to sources who declined to be identified. Refiners said they will give priority to direct state sales where possible but are also assessing offers from third parties.

Refiners have limited scope to absorb additional Iranian crude in the near term because most supplies are already contracted through August and long-term Middle Eastern suppliers are pressing buyers to honour annual contractual commitments. Liquefied petroleum gas (LPG) was already imported from Iran through traders and those flows could increase under the waiver, though commercial negotiations could take time because payment mechanisms and banking channels remain unclear. Potential crude and LPG supplies were discussed during the visit to New Delhi by the Iranian petroleum minister this week.

India received two cargoes of Iranian oil in April after Washington previously granted a 30-day waiver, with payments settled in Chinese yuan, and refiners noted that any expansion of trade will depend on clarity over settlement routes. Iran had been India's second-largest oil supplier in 2010-11 before US sanctions forced New Delhi to reduce purchases and eventually halt crude imports in May 2019. NIOC did not immediately respond to requests for comment because of a public holiday in Iran.

Several middlemen have approached Indian refiners with offers of discounted Iranian crude after Washington granted a 60-day sanctions waiver following initial talks under a nascent peace deal. The approaches have come directly from the National Iranian Oil Company (NIOC) and from intermediaries that claim to have been allocated volumes by the state producer. Refining sources said discussions are confidential and that they are weighing options amid the narrow trading window. NIOC is indicating to buyers that Iranian crude would be three to four dollars a barrel cheaper than comparable regional grades on a landed basis, and traders are relaying the same message to potential purchasers. The intermediaries contacting refiners are mainly small and mid-sized trading companies based in Singapore and Dubai, according to sources who declined to be identified. Refiners said they will give priority to direct state sales where possible but are also assessing offers from third parties. Refiners have limited scope to absorb additional Iranian crude in the near term because most supplies are already contracted through August and long-term Middle Eastern suppliers are pressing buyers to honour annual contractual commitments. Liquefied petroleum gas (LPG) was already imported from Iran through traders and those flows could increase under the waiver, though commercial negotiations could take time because payment mechanisms and banking channels remain unclear. Potential crude and LPG supplies were discussed during the visit to New Delhi by the Iranian petroleum minister this week. India received two cargoes of Iranian oil in April after Washington previously granted a 30-day waiver, with payments settled in Chinese yuan, and refiners noted that any expansion of trade will depend on clarity over settlement routes. Iran had been India's second-largest oil supplier in 2010-11 before US sanctions forced New Delhi to reduce purchases and eventually halt crude imports in May 2019. NIOC did not immediately respond to requests for comment because of a public holiday in Iran.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement