Published: Mon, October 08, 2018
Economy | By

India buying Iran oil in defiance of Trump sanctions

India buying Iran oil in defiance of Trump sanctions

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.

Price gains this week were limited by Saudi Arabia and Russia's saying they would raise output to at least partly make up for expected disruptions from Iran, Opec's Number 3 producer, due to the United States sanctions that take effect on 4 November.

Speaking to hundreds of members of the Basij militia and top Revolutionary Guard leaders gathered at Tehran's Azadi stadium, he said: "The situation of the nation, region and world is sensitive, especially for us the people of Iran".

The U.S. Labor Department's employment report showed that average hourly earnings increased 0.3 percent in September, while the unemployment rate fell to near a 49-year low of 3.7 percent.

West Texas Intermediate (WTI) for November delivery on Friday rose to US$74.34 a barrel on the New York Mercantile Exchange.

Crude futures rose on Friday as US unemployment data eased concerns about demand in the world's top oil consumer, with both benchmarks set for a weekly gain ahead of USA sanctions on Iranian oil exports. Trump at the time said he expected the Saudis and other Gulf allies to make up the shortfall in Iranian production that would result from the sanctions.

Top buyer China continues to buy a significant share of Iranian crude, with flows averaging 660,000 b/d in January-September, up from 602,000 b/d a year ago.

Khamenei's comments came prior to the date of US President Donald Trump's second batch of sections against Tehran, expected next November 4. The Iranian government has also agreed to it. Steps are being taken to transfer the rupee to Iran through the UCO Bank and IDBI Bank.

Prices of alternative Middle Eastern sour crudes surged to four-year highs, with the Platts December Dubai crude benchmark rising to $82.95/b earlier this week. But its output has declined sharply in recent months under the threat of US sanctions. Five VLCCs have disappeared from global satellite tracking systems since late August, while six recently reappeared after previously vanishing. This compares with 15 million-17 million barrels about three weeks ago before some takers turned off their transponders.

The U.S. chose to impose the sanctions after unilaterally withdrawing from the Iran nuclear deal, or Joint Comprehensive Plan of Action (JCPOA), in a move that was rejected by the deal's other signatories.

On the one hand, Russia's oil sector stands to benefit economically by increasing its oil exports and thus increasing sales.

Like this: