Iran is pitching its oil to Asian buyers outside China, contacting India, South Korea, and Japan, as the United States issued a temporary two-month waiver allowing Iranian oil sales, including in U.S. dollars, until August 21.
As part of the 14-point memorandum of understanding with Iran, the United States on Sunday authorized the production, delivery, and sale of crude oil, petrochemical products, and refined oil products of Iranian origin through August 21, 2026.
Representatives of the National Iranian Oil Company (NIOC) and other sellers have already made contact with refiners in India, South Korea, and Japan, anonymous traders involved in the talks told Bloomberg on Tuesday.
These major Asian oil importers haven’t imported Iranian oil in years due to the U.S. sanctions in place. Iran’s key oil buyer has been China, more precisely the Chinese independent refiners in the Shandong province, the so-called teapots.
Now the temporary U.S. waiver opens the door for Iranian oil sales in the wider Asian region, but refiners are not really rushing to snap up Iran’s crude, according to Bloomberg’s sources.
First, the waiver is only for two months and it is not certain how the U.S.-Iran talks will progress, so there could be an abrupt reversal of the general license.
Then, most refiners in Asia are already well-stocked on crude, having spent much of the past three months trying to procure additional supply from the Americas and West Africa to fill part of the gap left by the constrained Middle Eastern deliveries.
“Asia is unlikely to commit to Iranian crude imports while US policy on sanctions continues to flip-flop and the geopolitical situation remains highly fluid,” Sumit Ritolia, lead analyst for refining supply and modeling at energy intelligence firm Kpler, told Bloomberg.
Meanwhile, Iran isn’t wasting any time moving its oil out of the Gulf via the Strait of Hormuz after the U.S. lifted the naval blockade outside the chokepoint and the U.S. and Iran discuss a framework on a lasting peace deal.
By Tsvetana Paraskova for Oilprice.com
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