US actively considering waivers on Iran oil curbs

Lloyd Doyle
October 8, 2018

India will buy nine million barrels of Iranian oil in November, in a signal the world's third-biggest oil importer will continue purchasing crude from the Islamic republic despite United States sanctions coming into force on November 4.

Futures in NY increased 0.3 percent, on course for a fourth weekly gain.

Despande went on to say what innumerable analysts have already said: that the big question is if Saudi Arabia has the ability to make up for the shortfall, and while he pointed out they might be able to ramp up appropriately in nine months' time, supplying enough oil in the near term is more problematic.

Global benchmark Brent crude futures for December delivery fell 42 cents to settle at $84.16 a barrel.

India accounted for 12 per cent of U.S. crude exports in June.

Oil refiners such as state-owned International Olympic Committee and MRPL could use UCO BankNSE -1.76 % or IDBI BankNSE 0.79 % to route oil payments to Iran, sources said.

Iran's exports will fall to 1.1 million b/d in October, Platts Analytics projects. Iran, on the other hand, accused the two countries of breaking the production cut agreement. The total USA stockpiles of crude and petroleum products climbed to 1.25 billion barrels, the highest level in 10 months.

Top buyer China continues to buy a significant share of Iranian crude, with flows averaging 660,000 b/d in January-September, up from 602,000 b/d a year ago.

In 2015, the administrations of former President Barack Obama and Iranian President Hassan Rouhani forged an unprecedented deal to lift extensive USA sanctions on Iran in exchange for the country to agree to restrict its nuclear activities, which it maintained were strictly for peaceful purposes. Similarly, Iran's crude exports to China increased by 29,000 billion per day to 620,000 billion per day last month. In November, a second batch of potentially more damaging sanctions will be re-imposed on Iran's oil and shipping sectors as well as its central bank. 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.

United States 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. Throughout the week, hedge funds and speculators were active in the market, buying at dips and pushing prices up.

"The higher price that we have in the last month, it's not because of Iran", he said. If Saudi Arabia and Russian Federation make up for the losses from Iran after sanctions, prices would remain within a range.

Other reports by Iphone Fresh

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