As US waives oil sanctions on Iran, refiners in India, Asia look to buy Iranian oil

Indian refiners plan to resume buying Iranian oil after the Trump administration temporarily removed sanctions to alleviate an energy supply shortage, the Reuters news agency reported, quoting three sources from the energy sector in India.

On Friday, the US Treasury issued a 30-day sanctions waiver for the purchase of Iranian oil already at sea, allowing for the purchase.

The waiver applies to oil loaded on any vessel, including sanctioned tankers, on or before March 20 and discharged by April 19, according to the US Office of Foreign Assets Control.

An estimated 170 million barrels of Iranian crude oil are currently at sea on board ships scattered from the Middle East to waters near China, said Emmanuel Belostrino, senior manager for crude oil market data at Kepler.

A Singapore-based trader, however, warned that even with the waiver, it still takes time for companies to work through compliance, administration and banking, so it still takes time for deliveries of oil to be completed.