First Shipment Since Sanctions Period
- Iranian crude oil is set to arrive in India for the first time since 2019. The United States has decided to lift sanctions which had prevented Iranian oil from being exported because of former conflicts.
- Indian refineries have begun to seek Iranian oil again after the recent development. A tanker carrying Iranian crude has already departed and is on its way to India.
Shipment Details and Timeline
According to data from Kpler, an energy intelligence firm:
- The oil was loaded at Kharg Island on March 4
- The tanker is expected to reach Vadinar port in Gujarat on April 4
- The shipment contains about 600,000 barrels of crude oil
The delivery establishes a fundamental connection that enables both countries to restart their oil trading activities.
Uncertainty About Refinery Buyer
The identity of the Indian refinery which will handle this shipment remains unknown at this moment. Indian refiners have historically displayed high demand for Iranian crude according to past market patterns.
India’s Previous Dependence on Iranian Oil
Iranian crude oil stood as India’s primary oil source during earlier years of the country.
- Iranian oil supplied 11.5 percent of India’s total oil requirements.
- India consumed 518000 barrels of oil daily from Iran during 2018.
- The daily oil consumption from Iran reached 268000 barrels by May 2019.
The United States imposed sanctions on Iran which caused an immediate halt to all Iranian oil imports after the market decline.
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