Economy

Saudi Arabia unable to replace lost Iranian oil - Iran’s oil minister

Saudi Arabia unable to replace lost Iranian oil - Iran’s oil minister”

Of the 220.4 million metric tonnes (million MT) of crude oil imported by India in 2017-18, about 9.4% was from Iran.

President Donald Trump has said the Iran oil sanctions are meant to isolate the regime in that country and force them to negotiate a new nuclear deal. He said that India has its own energy requirements to fulfil.

US sanctions targeting Iran's crude oil exports come into force from November 4, with Washington ratcheting up the pressure on governments and companies around the world to slash their Iranian oil imports to zero. According to CNBC, Pradhan said India may use rupees rather than dollars to buy the oil, in an attempt to skirt the sanctions. The early October figures add to signs, however, that Iranian exports are falling more steeply than expected, stretching the ability of Saudi Arabia, non-OPEC Russia and other producers to fill the gap.

The catalyst for crude prices for getting tighten was the worries about tighter supply conditions once Washington's sanctions against Iran's crude oil exports kick in beginning in November.

While India wants to continue importing Iranian oil, albeit a reduced volume, US Secretary of State Mike Pompeo last month stated that Washington would consider waivers on the embargo but made it clear that these would be time-limited, if granted. Data also pointed to Iran oil reserves being run down ahead of sanctions which is likely to underpin prices in the weeks ahead. An industry source who also tracks exports said October shipments were so far below 1 million bpd. But hedge funds have amassed a large bullish position in Brent crude, amounting to nearly 470 million barrels, betting prices will head even higher.

Meanwhile, the International Court of Justice ordered the United States on Wednesday to ease some sanctions against Iran, including those related to the supply of humanitarian trade, food, medicine and the safety of civil aviation.

"Instead they're talking about 'sufficient pressure, ' which is their language for allowing banks to keep Iran connected to the global financial system, including through SWIFT or with oil waivers", the source said, referring to new efforts by officials in the Treasury Department and European allies to keep Iran connected to the premier worldwide banking system.

The escalating US-China trade war, and weakening currencies in major Asian oil importers such as India are all expected to cap rising oil prices as global economic and oil demand growth could suffer if Brent crude breaks above the $85-$90 band.

The EIA reported crude supplies rose by 8 million barrels for the week ended September 28 - the largest weekly climb year to date.

Pradhan said he had urged Saudi Arabia's oil minister to keep in mind the interests of oil consuming countries when it came to higher prices. "The basic point is that they are all government companies", Pradhan said, according to The Hindu.



Like this

loading...
loading...

Latest


10 October 2018
Ronaldo among first nominees for Ballon d’Or award
There were seven Frenchmen named on the list after helping Les Bleus win their second World Cup in Russian Federation this summer. Other top players nominated for the award are, Neymar , Gareth Bale , Eden Hazard , Luka Modric and Harry Kane.

10 October 2018
Cyril Ramaphosa to reveal Nhlanhla Nene's fate
He became the first black governor of the SA Reserve Bank in August 1999 and served for just more than 10 years until November 2009.

10 October 2018
‘Embarrassing’: Yanks routed by Red Sox 16-1, trail ALDS 2-1
As Boston starter Rick Porcello , said, wielding a cliché as expertly as one of his go-to sliders: "This is what it's all about". The winningest team in Red Sox franchise history held on to beat the New York Yankees 4-3 to clinch the Division Series.

10 October 2018
Rick Gates Solicited Proposal For Online Disinformation Campaign to Help Trump
Cruz, at the time , was the only person standing between Donald Trump and the Republican nomination. And he wanted to use social media to sow division and deepen rifts among the American electorate.

09 October 2018
White tiger kills Japan zookeeper in rare attack
A zookeeper has died after being mauled by a rare white tiger at a zoo in the southwestern Japanese city of Kagoshima. White tigers are Bengal tigers, not albinos or a separate subspecies, just the product of recessive genes.

09 October 2018
Saudis to Turkey: Search our consulate for missing WaPo columnist, dissenter
The Committee to Protect Journalists (CPJ ) has been documenting the increasingly harsh treatment of journalists in Saudi Arabia. On the eve of his planned marriage to a Turkish woman, he entered the consulate on 2 October and has not been seen since.

09 October 2018
Shawn Michaels Coming Out of Retirement For WWE Crown Jewel
Corbin looked confused on the outside of the ring, and that's when the Conquistador revealed that he was actually Kurt Angle. Tonight's episode of WWE Smackdown Live will feature two tournament qualifying matches.

09 October 2018
Liverpool boss Klopp slams 'senseless' Nations League
Klopp said this following his side's Premier League 0-0 draw with City at Anfield on Sunday in the Premier League. Liverpool manager Jurgen Klopp thinks Chelsea - who won the title in 2017 - are being overlooked as contenders.

09 October 2018
Iwobi Reveals Why The Arsenal Players Are So Happy Under Emery
With Arsenal fans in nostalgic mood, we look back on 10 of their classic kits and 10 that are best forgotten. Arsenal moved into the top four over the weekend after their 5-1 thrashing of Fulham on Sunday afternoon.

09 October 2018
President Trump Will Have Lunch With Kanye West This Week
West wanted to discuss the availability of job opportunities for former convicts. You heard 'em, they scream at me, they bully me. I'ma break it down to you right now.