India Will Buy Oil From Iran In November, Says Petroleum Minister

Andrew Cummings
October 8, 2018

United States 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.

Refiners have already announced purchases of oil from Iran for November at levels nearly similar to those in October, despite the start of the sanctions on the 4 November. Secretary of State Mike Pompeo said in India last month that the administration would consider waivers and that 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.

Iran's Minister of Petroleum Bijan Zangeneh dismisses the rhetoric by the Saudi crown prince about Riyadh's capability to replace sanctions-hit Iranian oil, saying that the global market will never believe such claims.

White House National Security Adviser John Bolton said on Thursday that the administration's objective was that there be no waivers and "exports of Iranian oil and gas and condensates drops to zero".


Reuters had reported on Friday that India would buy 9 million barrels of Iranian oil next month.

India, the world's third-largest oil importer, is a major importer of Iranian oil.

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

Another factor easing those fears was a Friday Reuters report that cited an unnamed usa government official as saying the Trump administration is considering waivers on its sanctions for countries that agree to reduce their imports of Iranian oil.

India has a strong trade and diplomatic relationship with both Iran and the US.


Iran's crude exports fell further in the first week of October, according to tanker data and an industry source, taking a major hit from US sanctions and throwing a challenge to other OPEC oil producers as they seek to cover the shortfall.

While Brent prices softened on Monday from $86 per barrel and was trading at $83.53 per barrel, traders worldwide are betting on crude oil prices to cross $100 yet again.

On Monday, petrol and diesel were selling at Rs 82.03 per litre and Rs 73.82 per litre, respectively, in New Delhi.

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.

"Oil should not only be priced from a producers' point of view consumers interest should also be taken care of", he said.


Other reports by iNewsToday

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