Reliance denies buying 5 million barrels of Iranian oil after US waiver

Reliance Industries Limited (RIL), which operates the world's largest refining complex, has denied that it purchased Iranian crude days after the United States issued a temporary sanctions waiver.

Earlier today, Reuters reported that RIL had purchased 5 million barrels of Iranian crude but said it was unclear when the oil would be delivered.

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According to the report, the cargo was purchased from the National Iranian Oil Co., and the crude was priced at a premium of about $7 per barrel to ICE Brent futures.

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Last week, the Trump administration announced a 30-day waiver, 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 has created a narrow window for buyers to access Iranian crude, which has largely been absent from formal markets due to US restrictions.

In May 2019, India halted imports of Iranian oil 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.

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.