Rocked by Trump's sanctions, Iranian oil exports drops further

Rocked by Trump's sanctions, Iranian oil exports drops further

U.S. sanctions on Iran's crude oil exports are due to come into effect from November 4, after being imposed with the aim of stopping Tehran's ballistic missile programme and its involvement in Syria and Iran conflicts.

But Iran, OPEC's third-largest producer, has repeatedly said that its oil exports can not be reduced to zero because of high demand levels in the market and has blamed Trump for an oil price rally caused by imposing sanctions on Tehran.

U.S. Secretary of State Mike Pompeo said in New Delhi that the U.S. administration acknowledged some buyers of Iranian oil would take a "little bit of time" to unwind their trade with Iran.

The Islamic Republic exported 1.1 million barrels per day (bpd) of crude in that seven-day period, Refinitiv Eikon data showed.

Petroleum Minister Dharmendra Pradhan on Monday said Indian companies will continue to buy Iranian oil in November despite the looming USA sanctions on that country.

In a sign that Iran oil exports won't fall to nothing from November, India will buy 9 million barrels of Iranian crude next month, Reuters reported on Friday.

Iran accounts for 10% of India's crude oil imports, making it the second largest importer of Iranian oil behind China. Last applied from 2012 to 2015, the sanctions are in retaliation for Iran's supposed nuclear proliferation program.

EU's Juncker hopes for Brexit deal in November Europe 17:15
She also said at the end of September that a "No Deal" exit from the bloc would be better for the nation than a bad deal. But officials have been meeting behind the scenes before a key summit in Brussels on October 17 and 18.

Brent crude, the worldwide benchmark, was down $1.38 to $82.78 per barrel at 1041 GMT.

Oil dropped below $83 a barrel on Monday, pressured by expectations that some Iranian oil exports will keep flowing after the US reimposes sanctions, easing a strain on supplies.

Furthermore, Leszczynski says that if India were to stop or significantly reduce imports from Iran, it would complicate the strategic relationship it is trying to build between the two countries.

A U.S. government official said on Friday that the Trump administration is actively considering waivers on sanctions it will re-impose next month for countries that are reducing their imports of Iranian oil.

"Everytime China cuts interest rates, they increase oil consumption", said Phil Flynn, an analyst at Price Futures Group in Chicago.

Moody's Investors Service in a report on Monday said the government's decision was credit negative for Indian state-owned oil marketing companies IOC, BPCL and HPCL.

"In effect, the government has asked the OMCs to sell petrol and diesel at subsidized prices, for which they will not be reimbursed", the report said.

Related Articles