India will break United States sanctions and keep importing Iranian oil

Ivan Schwartz
October 9, 2018

US light crude was up 45 cents at $74.74.

Reuters said that Indian Oil would buy six million barrels of oil and Mangalore Refinery and Petrochemicals three million barrels.

US President Donald Trump's administration is considering sanction waivers for countries that are reducing their imports of Iranian oil, a US government official said on Friday. Pradhan said India has its own energy requirements which need to be fulfilled.

While Brent prices softened on Monday from $86 per barrel and was trading at $83.53 per barrel, traders worldwide are betting on crude oil prices to cross $100 yet again.

Just as Brent Crude hit $86, Saudi Arabia hastened to inform the market that it is now pumping 10.7 million bpd-just shy of its all-time record high of 10.72 million bpd from November 2016-and could even tweak that 10.7 million "slightly higher" next month.

U.S. West Texas Intermediate (WTI) crude futures were down by 24 cents, or 0.3 percent, at $74.53 a barrel.

India is going to continue buying Iranian oil in November despite the US sanctions, Reuters reported citing sources close to the Indian oil industry.

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With Iran sanctions still on the table, potential spare capacity constraints and also a slowdown in US drilling, USA bank J.P.Morgan said in its latest cross-asset outlook for clients that it recommended to "stay long Jan '19 WTI on supply risks to crude". "So we did our job and more".

Indian refiners imported around 10 million barrels of Iranian oil in October, and its November shipments are expected to be lower. "We have ordered for our usual quantity of oil", he said while adding that they were discussing payment options.

"Iran's oil can not be replaced by Saudi Arabia nor any other country", Zanganeh was quoted as saying on his ministry's website.

Concern that the U.S. -Chinese trade war could slow down economic growth and hit oil demand also weighed on the market, traders in Asia said.

The inaction by OPEC and Russian Federation at the end of September-and the growing evidence from tanker tracking data that Iran's oil exports have started to fall quicker than most market participants had been expecting-has emboldened bulls, and some analysts started to predict that the possibility of $100 oil as soon as year's end is not to be ruled out.

The market will continue to react to "supply-driven risks", according to Darling, who also pointed to two of the key uncertainties on the supply side-the world's actual spare capacity and Saudi Arabia's actual ability to "really turn up the taps" this winter.

Other reports by GizPress

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