European refiners have started sourcing alternatives to Iranian crude supplies well before new US sanctions on the OPEC producer are due to kick in later this year, according to oil traders. Demand for Urals, Basrah Light growing Refiners treading cautiously with Iranian oil Demand for alternative medium-sour crude grades like Iraq’s Basrah Light and Russia’s Urals is already picking up in Europe, supported by additional buying as refiners in the region take advantage of strong margins. Iran’s looming economic isolation has triggered a scramble in Europe to replace its medium-sour crude. The region accounts for just under a third of Iran’s oil exports of around 2.4 million b/d. Oil prices have spiked above $80/b this month as Iran braces for tougher US sanctions due to come into effect in November. “Already you have several vessels that have failed [subjects] for Iranian crude, and issues with insurance, shipping. So demand […]