Reliance Stops Buying Iranian Oil Ahead of Waiver Deadline

• Reliance rejected cargoes on tankers Derya (2 million barrels anchored near Sikka port) and Lenore, while at least five Iranian tankers had been authorized for Indian purchase under the expiring waiver
• U.S. Treasury Secretary Scott Bessent confirmed Wednesday that waivers on Iranian oil purchases will not be renewed when they expire, reversing a March policy that had eased sanctions to manage oil prices
• State-run Indian Oil Corp purchased a 2-million-barrel cargo earlier in April, while the status of other authorized tankers remains unclear with some vessels disappearing from tracking data

Summary: Reliance Stops Buying Iranian Oil Ahead of Waiver Deadline

Key Development:

Reliance Industries has rejected two Iranian oil cargoes for failing to meet compliance requirements, days before the April expiration of U.S. sanctions waivers on Iranian oil exports. Treasury Secretary Scott Bessent confirmed Wednesday that the waivers would not be renewed.

Specific Cargoes:

• Reliance declined a 2-million-barrel cargo aboard the Iranian-flagged tanker Derya, which was anchored near Sikka port on India's west coast
• The company also rejected cargo on the supertanker Lenore
• India had previously allowed Reliance to purchase Iranian oil from five sanctioned tankers: Kaviz, Lenore, Felicity, Hedy, and Derya

Background Context:

Washington reinstated sanctions on Russian and Iranian oil purchases last month after lifting them temporarily to ease prices following U.S.-Israeli strikes on Iran. The temporary waiver had allowed certain Iranian oil transactions at sea.

Market Status:

• State-run Indian Oil Corp purchased a 2-million-barrel cargo on the supertanker Jaya earlier in April
• The Felicity likely discharged its cargo between April 14-16
• Several tankers' locations remain uncertain, with some last tracked in the Gulf of Oman
• It's unclear if any vessels reached areas where the U.S. has imposed blockades on Iranian oil shipments

Implications:

Reliance's rejection signals Indian refiners are preparing for stricter sanctions enforcement. This could tighten global oil supply and potentially impact crude prices as Indian buyers, among the world's largest oil consumers, curtail Iranian purchases.