Published: Wed, October 10, 2018
Economy | By

Indian companies DEFY President Trump by purchasing Iranian Oil despite U.S. sanctions

Indian companies DEFY President Trump by purchasing Iranian Oil despite U.S. sanctions

"In particular, both India and China continued to import crude from Iran, even though they had to cut down volumes significantly".

Besides, New Delhi sought to get around the restrictions by supplying goods including wheat, soybean meal and consumer products to Iran in exchange for oil.

Oil also dropped as investors focused on rising output from other producers, such as top exporter Saudi Arabia, to compensate for lower Iranian supplies.

The announcement, the first indication Washington was considering such waivers, followed a Reuters report that India planned to lift some Iranian oil in November although it has been cutting back on Iranian imports recent months.

International Olympic Committee and Mangalore Refinery and Petrochemicals Ltd (MRPL) together have placed order for 1.25 million tonne (MT) of crude oil from Iran.

Global benchmark Brent crude oil futures LCOc1 were at $83.26 per barrel at 0352 GMT, down 90 cents, or 1.1 percent, from their last close.

Speaking at "The Energy Forum" on Monday, oil minister Dharmendra Pradhan said two state refiners had placed orders for importing oil from Iran in November.


The Trump administration is open to allowing some countries to continue importing Iranian oil, despite promises to tighten the screws on Tehran and any country that continues doing business with the Islamic Republic, according to US officials who confirmed to the Washington Free Beacon that some nations may get a temporary pass from a cadre of new sanctions set to be imposed next month.

"Any country that makes such claims. just wants to display its support for the U.S. sanctions against Iran", Zanganeh was quoted as saying.

State owned oil and gas company, Indian Oil, was thought to be planning on purchasing 6 million barrels of Iranian oil next month, while Mangalore Refinery and Petrochemicals were set to buy 3 million barrels, Reuters reported on Friday, citing two unidentified industry sources.

President Donald Trump has pulled the USA out of a historic 2015 accord with energy-rich Iran signed to curb the Islamic republic's nuclear programme in return for ending sanctions.

Brent crude futures rose $1.09 to settle at $85.00 a barrel, a 1.30 percent gain.

Secretary of State Mike Pompeo said on a visit to India in September that some waivers from the sanctions might be granted to countries buying Iranian oil, but only if they agreed to cut their imports to zero. The Indian basket represents the average of Oman, Dubai and Brent crude.

The Minister also categorically stated that the government's directive to oil companies to absorb a Rs. 1 per litre hit to the price of petrol and diesel was not a reversal of the deregulation of oil prices. It added that the effective reversal of fuel price deregulation would also constrain future private sector investments in the sector.

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