Traders offer sanctioned Iranian crude to India as Chinese purchases peak

India turning into a magnet for sanctioned oil after its refiners started buying Russian oil last year at deep discounts

Suppliers of sanctioned crude oil, led by Iran, are flocking to Indian shores following India’s encouragement of imports of cheap Russian crude last year. This move defies Western pressure and sanctions, allowing Moscow to capture over 40 per cent of India’s oil market.

Traders in West Asia have approached Indian state-run refiners in the past few weeks with offers for sanctioned Iranian grades at deep discounts, as confirmed by refining officials.

The traders offered Malaysian blend crude, a euphemism for Iranian oil. However, Indian refining officials rejected the offers outright, despite the discounts being much higher than the $4-5 per barrel offered