Kamal Ghorui
Amid the Middle East conflict, India is all set to get its first shipment of Iran crude oil in over seven years. The decision to buy comes as the Donald Trump administration has waived off sanctions on Iran crude oil for a 30-day period to stabilise global crude oil prices.India, the world’s third-largest importer and consumer of oil, has not taken any shipments from Iran since May 2019, when US sanctions led it to halt such purchases. However, supply disruptions linked to the US-Israel conflict have created challenges for the country.
India to get Iran crude oil
The shipment, being transported by the Curacao-flagged very large crude carrier Jaya, has been bought by state-owned Indian Oil Corporation. It is en route to India’s eastern coast, according to ship-tracking data from LSEG and Kpler quoted by Reuters.Tracking data from LSEG showed that the vessel had earlier moved into Southeast Asian waters, where it was initially expected to offload cargo in China, before being redirected toward India. Another tanker, Jordon, is also indicating India as its intended discharge destination, according to the same data.Last week, the oil ministry confirmed that domestic refiners had bought Iranian crude amid the Middle East conflict, which has affected supplies passing through the Strait of Hormuz. In an official statement, the ministry noted that despite disruptions to supplies in the Middle East, Indian refiners have managed to secure adequate crude oil, including shipments from Iran, and are not facing any payment-related difficulties in procuring Iranian crude.It also emphasised that the country’s oil requirements for the months ahead are fully covered.Rejecting claims that an Iranian oil cargo bound for India had been rerouted to China because of payment issues, the government described such reports as inaccurate.The ministry further highlighted that domestic companies have complete freedom in sourcing crude oil.It added that India imports crude from more than 40 countries, allowing companies to choose suppliers and regions based on commercial factors.At one point, Iranian oil made up about 11.5 per cent of India’s total crude imports. In 2018, the country imported nearly 518,000 barrels per day from Iran.
