Oil prices rise, supported by U.S

Ivan Schwartz
October 8, 2018

USA oil shipments to India fell to 84,000 barrels per day (bpd) last month, down 75 per cent from a record high of 347,000 bpd in June, Kpler data showed.

Last week, India reduced gasoline and diesel prices to give relief to consumers against rising global crude prices caused by uncertainty over USA sanctions on Iran and OPEC's decision to raise output.

Estimates of the sanctions impact have increased sharply since May, when many analysts still expected the United States to grant widespread waivers to countries that make significant cuts, as the administration of Barack Obama did in 2012-15.

U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 35 cents to $74.68 a barrel by 1:07 p.m. EDT (1707 GMT).

Oil is heading for the longest run of weekly gains since January on concern that higher Saudi and Russian output may not prevent a supply crunch as impending USA sanctions squeeze Iranian exports.

Oil traders say they are concerned that the kingdom isn't ramping up output quickly enough, and that it may not have enough capacity to fully cover Iran's losses.

Russian Federation and Saudi Arabia are pumping an extra one million barrels a day of oil and could do even more.

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However, India will buy 9 million barrels of Iranian oil in November, two industry sources said, indicating that the world's third-biggest oil importer is to continue purchasing crude from the Islamic republic.

"Iranian exports could fall below 1 million bpd in November", U.S. bank Jefferies said.

"Legal experts and directors of the governmental and the private sectors, especially in the Health Ministry, and all people who witness violation of the ICJ's ruling are needed to present their proofs on the violation cases to be raised at the main sessions of the court on Iran-U.S. dispute", Laya Joneidi said, addressing a forum in Tehran on Sunday.

The Iranians have ignored the treaty "for an awfully long time", Mr Pompeo told reporters.

Iran's key oil customers are opting for more medium sour crudes from Saudi Arabia, Iraq, Russia and UAE, which is causing prices of these grades to soar and putting pressure on global refinery margins. Iran had around 8 million-10 million barrels of crude and condensate on floating storage as of October 3, mostly off its main crude oil terminals.

"The Saudis won't flood the market and they don't want to see it oversupplied", said Giovanni Staunovo, an analyst at UBS Group AG.

Other reports by GizPress

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