Refiners in India, elsewhere in Asia look to buy Iranian oil after US waives sanctions

Core Viewpoint - Indian refiners are set to resume purchasing Iranian oil following a temporary waiver of U.S. sanctions, with other Asian refiners also exploring similar opportunities due to an energy crunch caused by the U.S.-Israeli conflict with Iran [1][2][3]. Group 1: Sanctions Waiver Details - The U.S. has issued a 30-day sanctions waiver for Iranian oil already at sea, allowing oil loaded on vessels before March 20 to be discharged by April 19 [4]. - This is the third time the U.S. has temporarily waived sanctions on Iranian oil since the onset of the conflict [4]. Group 2: Iranian Oil Availability - Approximately 170 million barrels of Iranian crude are currently at sea, with estimates from Energy Aspects suggesting 130 to 140 million barrels, which is less than 14 days of current Middle East production losses [5][6]. - Asia relies on the Middle East for 60% of its crude supply, and the near-closure of the Strait of Hormuz has led to reduced refinery operations and fuel exports across the region [6]. Group 3: Market Dynamics and Challenges - Indian refiners, having smaller crude stockpiles compared to other major Asian importers, are eager to secure Iranian oil, while awaiting government guidance and clarity on payment terms [2][9]. - Complications in purchasing Iranian oil include uncertainties regarding payment methods and the aging condition of many vessels in the shadow fleet [9][10].