India to continue buying Iranian crude despite United States sanctions threat

Lloyd Doyle
October 8, 2018

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India, however, wants to keep importing oil from Iran, because Tehran offers discounts and incentives for them at a time when the Indian government is struggling with higher oil prices and a weakening local currency.

United States president Donald Trump is reported to be "actively considering waivers" on sanctions on Iranian oil imports for some countries ahead of the November deadline.

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".

The U.S.'s sanctions on Iranian oil come into effect on November 4, but at least one country says it won't be playing ball.

However, the Trump administration this weekend announced it is considering waivers on sanctions for countries that are merely reducing their imports of Iranian oil.


The official, speaking on the condition of anonymity, said the administration was "in the midst of an internal process" of considering exemptions for major cuts. He added that the administration would not necessarily achieve that.

"Refiners have placed November nominations to lift 1.25 million tonnes (about 9 million barrels) of oil from Iran", a source has told Reuters.

"This is one of the single biggest supportive factors for crude", said analysts at JBC Energy of the U.S.re-imposition of Iran sanctions.

"Chatter that Saudi Arabia has replaced all of Iran's lost oil" is weighing on prices, said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

"The president has directed all of us in the government to come up with steps to re-impose the economic sanctions and to do whatever else is necessary to ensure we bring maximum pressure on the regime to stop its malign behavior across the board - not just in the nuclear field, but across the board", Bolton said on Thursday.

Saudi Arabia said last week it plans to raise production in November from October output of 10.7 million barrels per day (bpd), indicating Riyadh will be boosting its supply to the highest ever level.

Other reports by Iphone Fresh

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