Indian refiners pay for Iranian oil in yuan, Pg17

Key Highlights:

• Indian refiners are paying for Iranian oil in Chinese yuan through ICICI Bank due to a temporary US sanctions waiver.
• The US Treasury Secretary announced the US would not renew the waivers, with the exemption on Iranian oil set to lapse on Sunday.
• Indian Oil Corp (IOC) purchased 2 million barrels of Iranian oil, worth roughly $200 million, in the country’s first purchase in seven years.
• Reliance Industries has also been allowed to berth four vessels carrying Iranian oil.

Detailed Insights:

• The US sanctions waiver was introduced to ease prices driven up by the US-Israel war on Iran.
• Difficulties in arranging payments due to sanctions have deterred some buyers of Iranian crude.
• ICICI Bank is routing funds in Chinese yuan via its Shanghai branch to seller accounts in yuan.
• IOC paid about 95% of the cargo's value against the supplier's notice of readiness, an unusual arrangement.

Key Concepts Involved:

• Sanctions Waiver: A temporary lifting of penalties to allow specific activities, like oil purchases, under certain conditions.
• Refiners: Companies that process crude oil into usable products like gasoline and diesel.
• Crude Oil: Unrefined petroleum, a naturally occurring fossil fuel.