India will break U.S. sanctions and keep importing Iranian oil

Lloyd Doyle
October 9, 2018

"We expect the global leadership to acknowledge India's need for Iran's oil", Pradhan said, adding that he wanted major oil producers like Saudi Arabia to raise production. Iran has pledged to block any OPEC supply increase that the country deems to be against its interest.

"We have to fulfil our own domestic requirements".

The Islamic Republic exported 1.1 million barrels per day (bpd) of crude in that seven-day period, Refinitiv Eikon data showed. Consequently, rising oil supply has added to the pressure observed in the oil complex this morning.

Last week, Saudi Arabia, the biggest producer among the Organization of the Petroleum Exporting Countries (OPEC), announced plans to lift crude output next month to 10.7 million bpd, a record. The bulk of spare capacity is held by Saudi Arabia. Iran says it has abided by the nuclear deal signed in 2015 with five major powers including the United States. China is reportedly reducing its oil imports from Iran, though it's not likely to fully comply with the USA demands.

The official said the administration "is ready to work with countries that reduce their imports on a case-by-case basis".

A first round of American sanctions took effect in August, targeting Iran's access to the U.S. dollar, metals trading, coal, industrial software, and auto sector.


India's oil and natural gas minister, Dharmendra Pradhan, confirmed Monday that two Indian oil companies would be buying Iranian crude in November.

"One way or another, it looks as though India is going to take some Iranian crude", said Olivier Jakob of Petromatrix, adding that the development was helping oil to "retrace some of the price surge we saw last week".

Alongside potential waivers on Iranian sanctions, oil supply is seemingly back on the rise with Libya recently boosting oil production to 1.25mbpd (200kbpd more than the September average). "This is an obvious fact".

The official, who spoke on the condition of anonymity, said the administration was "in the midst of an internal process" of considering exceptions called SRE waivers, or significant reduction exemptions.

The United States plans to impose new sanctions targeting Iran's oil sector on November 4, however a US government official said the Trump administration is "in the midst of an internal process" of considering waivers for countries that are reducing imports of Iranian crude.

Other reports by Iphone Fresh

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