India to keep buying Iranian oil despite USA sanctions: Sources - International

Official says S Arabia unable to replace Iran’s oil

Official says S Arabia unable to replace Iran’s oil

Global benchmark Brent crude oil futures were at $83.25 per barrel at 0115 GMT, down 91 cents, or 1.1 percent, from their last close.

Crude oil for October was trading lower by Rs 80, or 1.44 percent, to Rs 5,466 per barrel with a business volume of 2,472 lots at the Multi Commodity Exchange (MCX).

Despite US' sanctions coming in force from November 4, India, the world's third largest oil importer, is all set to buy 9 million barrels of Iranian oil next month, reports Reuters.

U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 35 cents to $74.68 a barrel by 1:07 p.m. EDT (1707 GMT).

India had planned to import about 25 million tons of crude oil from Iran in the current fiscal, up from 22.6 million tons imported in 2017-18.

Oil has been supported by concern that the Iranian export loss will leave a thinner margin of unused production capacity to deal with supply shocks.

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He put the country's oil exports volume at 2.8 million oil barrels per day (bpd) and reiterated that OPEC and non-OPEC member states can not make up for Iran's huge oil production volume in the worldwide markets.

Hedge funds cut their bullish wagers on US crude in the latest week to the lowest level in almost a year, data showed on Friday.

Notably, Reuters also noted that the deal was struck with cooperation from the United States, even though Russian Federation had publicly attacked the U.S.' targeting of Iran via sanctions and had pledged to help protect Iranian trade to help keep the country's economy afloat.

Secretary of State Mike Pompeo said in India last month that the administration would consider waivers and that some buyers of Iranian oil would take a "little bit of time" to unwind their trade with Iran.

Iran's key oil customers are opting for more medium sour crudes from Saudi Arabia, Iraq, Russia and UAE, which is causing prices of these grades to soar and putting pressure on global refinery margins. The bulk of spare capacity is held by Saudi Arabia.

Saudi Arabian Minister of Energy and Industry Khalid Al-Falih said the kingdom is boosting production and would supply refiners. Last month, the group appeared to rebuff his calls for a rapid production increase to offset the drop in Iranian shipments, prompting a surge in prices and even harsher rhetoric. But Russia, China, and the three European powers that also signed the deal have continued to honor it and are working with Iran on ways to evade the US sanctions.

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