Indian Refiners Willing To Resume Oil Imports From Iran

An oil refiner from India has started negotiations with the Islamic Republic to resume crude imports as soon as the nuclear deal is finalized.

Reuters cited an Indian refining source on Thursday that the Indian company is in talks with Iran for sourcing its oil, but the sources declined to be identified due to sensitivity of the matter.

India, which used to be Iran's No. 2 customer, halted oil imports in 2019 after former US President Donald Trump withdrew from the nuclear deal and re-imposed sanctions on Tehran's oil exports.

According to the unnamed source, New Delhi is waiting for more clarity on the nuclear deal, which apparently is close to tangible results.

A new deal can potentially pave the way for more oil supplies on global markets and soften prices about $5-10 a barrel, because Iran can contribute five percent to the world’s crude volume.

Earlier on Thursday, Japanese oil and energy corporation ENEOS announced its readiness to resume oil imports within two to three months of any revival of the 2015 Iran nuclear deal.

Tsutomu Sugimori, chairman of Japan’s largest refiner, said Thursday that ENEOS would not be able to resume Iranian imports immediately as it needed to set up insurance and arrange shipping. He called a two to three-month period a “possibility.”

Also, in preparation for the possible easing of US sanctions, Iran and South Korea, another major Iranian oil customer before 2018-19, opened detailed talks on freeing Tehran's money frozen by Korean banks fearful of punitive US measures.

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