Iran sanctions: India lines up alternate sources, supplies not to be impacted

India, the second biggest buyer of Iranian oil, has lined up alternate sources to make up for the likely shortfall in supplies after the US decided not to give waiver from its sanctions for buying oil from the Persian Gulf nation.

The Trump administration Monday decided not to renew waiver that let countries like India buy Iranian oil without facing US sanctions.

"Our crude sources are wide. We have alternate sources lined up to make up for any shortfall," a top source said.

US President Donald Trump last year withdrew from the 2015 nuclear deal between Iran and world powers and revived a range of sanctions against the Persian Gulf nation. It, however, granted a six-month waiver from sanctions to eight countries - China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece, but with a condition that they would reduce their purchases of Iranian oil.

India, which is the second biggest purchaser of Iranian oil after China, had agreed to restrict its monthly purchase to 1.25 million tonne or 15 million tonne in a year (300,000 barrels per day), down from 22.6 million tonne (452,000 barrels per day) bought in 2017-18 financial year.

"We have optional volumes (over and above the term contracts) from a number of supplier which we can exercise to make up for any shortfall from Iran," the source said. "We can also go to the spot (or current) market to source crude."