The US and Iran have held indirect negotiations to renew the Tehran agreement to ban nuclear activities in order to lift sanctions.
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Indian analysts and one European refinement are reconsidering their crude purchases in order to replace Iranian oil in the second half of this year, expecting US sanctions to be lifted, company officials and trade sources said.
Former US President Trump abandoned Iran's 2015 nuclear deal and imposed sanctions on Tehran in late 2018.
Until then, Europe and Turkey had consumed about 5,00,000 barrels a day (bpd) of Iranian oil. India, Iran's largest client after China, bought 4,80,000 bpd in the financial year starting April 2018.
At least one European refiner has held in-depth negotiations with Iranian state oil company NIOC over a resumption of purchases and Indian analysts say they plan to reduce spot purchases to make barrels of Iranian contracts.
India, the largest buyer and importer of the world, has suspended imports from Tehran in 2019 after a temporary deadline granted to other countries.
The administration of US President Joe Biden and Iran have held informal talks to renew the Tehran agreement to ban nuclear activities in order to lift sanctions.
Iran does not disclose its details of oil exports, but tests based on tank tracking show exports have dropped from a high of 2.8 million bpd to as low as 2,00,000 bpd in 2018. fourth quarter when sanctions are lifted.
Various refiners of the Indian subcontinent, who refine their unsuitable refineries, have pledged to buy Iranian oil once sanctions have been lifted. Indian analysts have increased the share of local purchases to use cheaper barrels in the stock market and take the lost Iranian cargo with U.S. oil.
The state-owned Bharat Petroleum Corporation Limited, which plans to find a market for 45% of all imports, will buy Iranian oil once sanctions are lifted, a company spokesman said.
The richest Iranian crude distillate in the Iranian is compatible with BPCL refining in Kochi and costs $ 2- $ 2.5 / barrel under the same distances, he said.
Hindustan Petroleum Corporation Limited (HPCL) also said it would buy Iranian raw materials in terms of fair value and economic viability, its chairman M. K. Surana told Reuters.
The Indian Oil Corporation is heavily preparing for the purchase of stains and could easily process 2 million tons (14.6 million barrels) of Iranian oil this financial year, said a company source, who declined to be identified.
The CEO of Mangalore Refinery and Petrochemicals Limited said his company would also reduce the purchase of stains and buy Iranian oil.
The resumption of Iranian oil will help India replace low-income goods for members of the Organization of the Petroleum Exporting Countries, reducing oil production support during the COVID-19 epidemic.
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