India getting ready to buy Iranian crude once US sanctions are eased

India’s state-run oil refiners are ready to snap up Iranian crude the moment US sanctions are eased, according to a government official.

Refiners have started making preparations in advance of the possible removal of penalties so they can swiftly enter into contracts for Iranian supply, said a senior oil ministry representative, asking not to be named because they’re not authorized to speak to the media. This includes drafting commercial terms and putting in place mechanisms to quickly assess crude quality, the official said.

India has been vocal in its support for Iranian crude purchases recently as it laments the price of supplies from Saudi Arabia. The world’s third-largest importer has also signaled its desire to diversify its sources of oil, hoping the new US administration will take a softer line on sanctioned producers. Its criticism comes as the consumer struggles with lower demand due to a Covid-19 resurgence.