Iran is reaching out to its old customers in Asia to gauge interest in its crude as the Persian Gulf oil producer ramps up diplomacy in a bid to get US sanctions lifted.
At least five refiners across the region have been approached by National Iranian Oil Co. — the state oil marketer — to discuss the possibility of buying crude if sanctions are eased, according to people familiar with the matter. Talks are preliminary, with no discussion on volumes or prices just yet, they said, asking not to be identified because the information is confidential.
One processor has been contacted twice so far this year after having no interaction with the OPEC producer at all in 2020, according to one person. The Iranian oil ministry in Tehran declined to comment on the matter.
Citigroup Inc. has described Iran as the biggest wildcard for the oil market this year, although there’s no certainty a deal will materialize anytime soon that would lead to rising exports.
While Iranian oil exports are still subject to sanctions, shipments have been creeping up and flows to China have received some unwanted attention recently. India is also hoping Biden will take a softer line against Iran so that the world’s third-largest oil importer can diversify its crude sources.