India expected to keep buying Iranian oil despite sanctions by US

India buying Iran oil in defiance of Trump sanctions

India buying Iran oil in defiance of Trump sanctions

File image of Dharmendra Pradhan.

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 Trump administration is considering waivers on sanctions, a USA government official said on Friday.

Delhi is hopeful that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries will heed United States calls for production to be boosted by one million barrels per day, as promised in June, which might help bring benchmark prices down.

Two companies in India, which in the past have been big buyers or Iranian oil, have ordered barrels in November, according to India's oil minister.

Citing the Kremlin, Reuters reported that Iranian Foreign Minister Mohammad Javad Zarif and his Russian counterpart Sergei Lavrov discussed ways to enhance Tehran-Moscow energy cooperation over the telephone on Monday. Paying in rupee is an option.

"Even without sanctions also, Iran had been accepting payments in rupee".

More news: Focus on children's mental health, WHO urges African leaders
More news: Tway wins Safeway Open playoff for first PGA Tour title
More news: Microsoft in talks to buy Fallout: New Vegas studio Obsidian Entertainment

India had thus far not publicly articulated its stand on the issue, but with the advance orders placed for November, has made it clear that India will not "zero out" its oil intake from Iran.

Singh said International Olympic Committee is importing the "usual" monthly volumes of oil from Iran. The global benchmark hit a four-year high of $86.74 last week but slipped as low as $82.66 on Monday. It is likely other buyers of Iranian oil - the EU, Japan and South Korea - may also be allowed to continue to buy from Iran for some more time.

India had planned to import about 25 MT of crude oil from Iran in 2018-19, up from 22.6 MT imported in 2017-18.

The deal envisaged the removal of nuclear-related sanctions against Iran in return for steps by the country to restrict certain aspects of its nuclear energy activities.

While the persistent fear of a supply shortfall triggered by sanctions on Iran coming into effect by early November had provided the market the thrust upwards, the huge flow of speculative capital prompted by worries over supplies has created huge net-long futures positions for financial investors which has exerted an exaggerated price action.

As the start date of the US sanctions on Iran's oil is less than four weeks away, the market is jittery and prone to emotional reactions regarding the two key uncertainties over the next couple of months-how much Iranian oil will be lost to the USA sanctions, and how much spare capacity Saudi Arabia can bring (or is willing to bring) to offset possible steep losses.

Recommended News

  • Move over, Singapore - Japanese passport opens the most doors now

    Move over, Singapore - Japanese passport opens the most doors now

    The UAE has made the most remarkable ascent on the Henley Passport Index , from 62nd place in 2006 to 21st place worldwide now . As a result, while SA is ranked at 52, there are actually 95 countries with stronger-rated passports on the index.
    DC Comics hires James Gunn after Disney fires him

    DC Comics hires James Gunn after Disney fires him

    There's still no release date set for Suicide Squad 2 , but Warner Bros . now has 5th June, 2020 reserved for an unnamed DC movie. Fresh off his Marvel firing, James Gun is reportedly in talks to write and potentially direct DC's Suicide Squad sequel.
    Google won’t bid on $10 billion Pentagon cloud computing deal

    Google won’t bid on $10 billion Pentagon cloud computing deal

    Had the JEDI contract been open to multiple vendors, we would have submitted a compelling solution for portions of it. The JEDI cloud contract would potentially have a much broader exposure to the Pentagon's advanced weapons systems.
  • EU officials warned to prepare for no-deal Brexit

    EU officials warned to prepare for no-deal Brexit

    Earlier in the day, she told BBC Radio Ulster that it is "eminently possible" to reach a Brexit deal that "works for everyone" with weeks.
    Jamal Khashoggi: What we know about journalist’s disappearance

    Jamal Khashoggi: What we know about journalist’s disappearance

    She said the writer first visited the consulate on September 28 "despite being somewhat concerned that he could be in danger". Embassies and consulates under the Vienna Convention are technically foreign soil and must be protected by host nations.
    Embattled Ronaldo nominated for Ballon d’Or, but Modric now bookies’ favorite

    Embattled Ronaldo nominated for Ballon d’Or, but Modric now bookies’ favorite

    Mbappe scored four times in 13 minutes on Sunday but also missed a number of chances, which does not surprise Griezmann. Paul Pogba says he would love a Frenchman to win the Ballon d'Or , but does not believe it should be him.
  • International Monetary Fund  warns Nigeria on tough times ahead

    International Monetary Fund warns Nigeria on tough times ahead

    It also assumes that Trump imposes a 25% tariff on imported cars and auto parts imports. He contended that China had "already retaliated" against his tariff increases.

    Google announces Pixel 3 and Pixel 3 XL

    It features an Ambient EQ mode, which dims the screensaver depending on the time of day so that it's never blaring in your face. Third-party manufacturers like Lenovo and JBL already make their own versions, complete with integrated camera for video calls.
    Taylor Swift makes history at American Music Awards

    Taylor Swift makes history at American Music Awards

    Additionally, several of gospel and R&B's heaviest hitters will assemble for what's sure to be a touching Aretha Franklin tribute. She added that the awards represented "encouragement and motivation to be better and work harder".
  • Two Britons killed in taxi among five dead in Majorca flash floods

    Two Britons killed in taxi among five dead in Majorca flash floods

    The weather agency, AEMET, said more heavy rainfall is expected Wednesday in eastern and southern parts of the Iberian peninsula. The spokeswoman for a local emergency services coordinator confirmed: "Five people including two British nationals have died".
    Branson: Virgin Galactic To Put People In Space in 'Weeks, Not Months'

    Branson: Virgin Galactic To Put People In Space in 'Weeks, Not Months'

    Test pilots have been putting the SpaceShipTwo craft, VSS Unity, through its paces high above the Mojave desert in California. The 42-second burn blasted it to 171,000 feet, almost five times the cruising altitude of a transatlantic passenger plane.
    Vodafone's Pixel 3 And Pixel XL Plans And Pricing

    Vodafone's Pixel 3 And Pixel XL Plans And Pricing

    Google has succeeded with lower-priced devices like smart speakers and home routers, but the phones have been a tougher sell. Titan, a form of security Google has developed for its data centres, is now also apparently found on the new Google phones.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.