Zhejiang Wuchan Zhongda, a venture between government fund Zhousan Communications Investment Group and Wuchang Zhongda Group, is the first privately owned trading company to receive a crude import license from the ministry.
"As OPEC exports continue to rise, inventories continue to build, which is putting downward pressure on oil prices," analysts at Bernstein Energy said. "A slowdown in the global economy remains the key downside risk to oil."
Financial markets have been hit hard by a range of worries, including the US-China trade war, a rout in emerging market currencies, rising borrowing costs and bond yields, and economic concerns in Italy.
India, the world's third-biggest oil consumer, meets more than 80 per cent of its oil needs through imports. Iran is its third-largest supplier after Iraq and Saudi Arabia and meets about 10 per cent of the total needs.