India’s state-run refiners are in talks with traders marketing Iranian crude, and are preparing to buy barrels if the US extends waivers beyond August or eases restrictions, according to people familiar with the matter.
The companies, however, have little room to buy Iranian oil immediately, having fully contracted shipments required through August after they sought to secure supplies in advance during the Middle East war. Still, refiners may pick up some Iranian cargoes if the discounts are significant, the people said, asking not to be named because the negotiations are private.
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The talks are instead aimed at securing access to Iranian barrels should Washington extend the waiver beyond the current Aug. 21 deadline.
Sellers of Iranian oil are finding it harder to attract buyers as prices of unsanctioned Middle Eastern grades have collapsed following the ceasefire that helped restart oil flows through the Strait of Hormuz. Prices of crudes from both within and outside the Persian Gulf have plunged several dollars below underlying benchmarks, narrowing the advantage for Tehran and depriving it of much-needed revenue.
