Economy

Despite US sanctions, India to continue buying Iranian oil

Despite US sanctions, India to continue buying Iranian oil”

USA considering waivers on Iran oil sanctions Reuters, Washington: The United States is actively considering sanctions waivers for countries that are reducing their imports of Iranian oil, a U.S. government official said on Friday. "It now appears that only China and Turkey may be willing to risk US retaliation by transacting with Iran". Unlike many other news organizations, we have not put up a paywall. On Wednesday, the global benchmark hit a late 2014 high of $86.74.

With that being said, analysts are expecting a loss of about 1 Million BPD (Barrels Per Day).

However, some analysts doubt that 12 million barrels a day can be reached quickly, or maintained for an extended period.

USA bank Jefferies said there was enough oil to meet demand, but "global spare capacity is dwindling to the lowest level that we can document".

Like Putin, Al-Falih blamed part of the increase on the market's anticipation of disruptions in Iran and elsewhere, rather than the current balance between supply and demand.

Secretary of State Mike Pompeo announced on Wednesday the termination of the USA and Iran's 1955 Treaty of Amity, Economic Relations, and Consular Rights following Iran's use of the document as justification to take the U.S.to the United Nations' International Court of Justice (ICJ) over sanctions imposed by the Trump administration. Despite the International Atomic Energy Agency affirming Iran's compliance with the agreement, Trump said Tehran's support for regional movements opposed to Western interests, its ballistic missile development and alleged desire to build nuclear weapons meant the deal was not worth it.

The court further said that sanctions on goods "required for humanitarian needs. may have a serious detrimental impact on the health and lives of individuals on the territory of Iran".

Indian Oil Corp will lift 6 million barrels of Iranian oil and Mangalore Refinery and Petrochemicals Ltd 3 million barrels, the source told Reuters. But its output has declined sharply in recent months under the threat of US sanctions.

Traders said ongoing concerns that the US-Chinese trade war could slow down economic growth also weighed on crude on Monday. "It's mostly because of things happening in Canada and Mexico, Libya, Venezuela, and other countries".

All told, the Iran situation (along with the USA trade war with China) is largely responsible for a 15-20 percent rise in oil prices since mid-August, despite the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russian Federation repeatedly insisting they can ramp up to compensate for the loss of Iranian crude exports - and despite Friday's news that India will buy 9 million barrels of Iranian oil in November.



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