Iran Offering Cheap Oil to India

Following the easing of tensions and reopening of the Strait of Hormuz, Iran has started offering discounted crude oil to Indian refiners.

According to Reuters, intermediaries and National Iranian Oil Company (NIOC) are offering Iranian crude at $3-4 per barrel lower than similar quality oil from the region. Iranian Petroleum Minister also discussed possible supplies of crude and LPG during his recent visit to New Delhi.

However, Indian refiners have limited scope for additional purchases as most have secured supplies till August. India had earlier imported two parcels of Iranian oil in April under a short-term US waiver and paid in Chinese Yuan.

Kepler’s report suggests India’s diversified sourcing and existing contracts limit further large-scale purchases of discounted Iranian oil.