Signs of possible renewed energy ties emerged as India’s Petroleum Minister met his Iranian counterpart on the sidelines of the BRICS Energy Ministers’ Meeting. The Indian official noted on social media that the two sides examined ways to work together in the energy field and reaffirmed India’s focus on strengthening energy security via dialogue and balanced partnerships.
India stopped importing crude oil from Iran in 2019 after U.S. sanctions took effect. Figures from S&P Global Commodities at Sea show Indian purchases averaged 518,000 barrels per day in 2018, then fell to 268,000 barrels per day in the first five months of 2019 during a short U.S. waiver period.
Indian refiners largely avoided Iranian crude until a recent thirty-day U.S. waiver was issued. A new understanding between Iran and the United States also includes provisions allowing production, transport, and sale of Iranian oil and petrochemical products.
Throughout the sanctions period, China remained Iran’s main crude buyer. S&P Platts data indicate Chinese independent refineries took in roughly 1.58 million barrels per day from Iran between January and May this year.
