Published: Tue, October 09, 2018
Economy | By

Oil prices steady after Iranian exports fall further

Oil prices steady after Iranian exports fall further

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

"The US government's tough stance raised the stakes for a more significant Iran export loss than previously foreseen", said Norbert Ruecker, head of macro and commodity research at Swiss bank Julius Baer.

Washington is pushing allies to cut imports of Iranian oil to zero and will impose a new round of sanctions on Iranian oil sales in November. But Iran, OPEC's third-largest producer, has repeatedly announced that its oil exports can not be reduced to zero because of high demand levels in the market.

Pradhan said he had spoken to Saudi Oil Minister Khalid al-Falih two day earlier about the June decision by OPEC and major oil producers to add 1 million bpd to the oil market.

Last week, India reduced gasoline and diesel prices to give relief to consumers against rising global crude prices caused by uncertainty over United States sanctions on Iran and OPEC's decision to raise output.

LONDON-Oil prices started the week under pressure, amid reports the USA could grant waivers to some buyers of Iranian crude when oil sanctions on the Islamic Republic go into effect next month.


Pradhan said a new world order was being established and added, "Is this not a recognition of India's leadership?"

Brent crude was up 26 cents, 0.3 percent, at $84.17 a barrel by 0244 GMT.

Oil also dropped as investors focused on rising output from other producers, such as top exporter Saudi Arabia, to compensate for lower Iranian supplies which have fallen further in October according to export data.

DUBAI - Iran's Oil Minister Bijan Zanganeh has dismissed claims by the Saudi crown prince that Saudi Arabia can replace sanctions-hit Iranian oil in the market as "nonsense". To this, taxes at the central and state levels are added, besides dealers' commission, to arrive at the retail price. Also, subsidised domestic cooking gas prices have been increased by Rs 2.89 per 14.2 kg cylinder to Rs 502.40, an all-time high.

On the last week's excise duty and fuel price cut, the minister said these prices will not be deregulated. Additionally, the state-owned oil marketing companies have been mandated to reduce prices of petrol and diesel by Re 1 a litre.

Iran has blamed Trump for oil price hikes, but the USA president has pointed the finger at OPEC and called on the oil-producing body to boost output.

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