The tanker carrying Iranian crude oil that had been heading to Vadinar has changed course and is now signalling that its new destination is China.
The Ping Shun, carrying 600,000 barrels of crude, had loaded at Kharg Island and would have been the first Iranian oil to land in India since 2019, when the US slapped sanctions on Iran and forced New Delhi to halt purchases.
The ship changed course as it neared Vadinar port in Gujarat, which it had indicated was its final destination.
“There must be payment issues. They want upfront payment,” said Sumit Ritolia, a leading analyst at Kpler, a company that tracks shipping movements and provides data analysis.
The shipment follows a temporary easing of restrictions by Washington, which has been trying, unsuccessfully, to keep a lid on global oil prices amid the US and Israeli war against Iran that has virtually paralysed traffic through the key Strait of Hormuz.
The US has allowed the sale of Iranian oil already loaded onto ships until April 19.
India had been a major buyer of Iranian crude until the 2019 US sanctions came into force after Washington scrapped the Iran nuclear deal.
Another ship, the Sea Bird, unloaded Iranian LPG at Mangalore port a few days ago.
The Brent crude index, a global benchmark for oil prices, has been seesawing in recent days, fuelled by speculation over when the war will end. Brent stands at $109 Friday, down from a recent peak of $118. Oil prices surged 63 per cent month on month in March on fears of shortages triggered by the war.
India had been looking to secure large volumes of Iranian crude before the April 19 deadline. India and China are the world’s second- and third-largest buyers of crude oil.
New Delhi is also keen to see the once-important supply line reopened on a longer-term basis.