Ahead of U.S. sanctions, India looks beyond Iran for oil imports

Share

On Tuesday, Brent rose as high as $82.55, the highest since November 2014.

Oil prices eased on Wednesday after US data showed a surprise build in domestic crude inventories, but an impending drop in Iranian exports kept Brent futures above $80 a barrel and on track for a fifth straight quarterly gain.

The price of Brent crude oil could continue its advance as traders ignore US President Donald Trump's persistent calls for producers to raise their output.

Oil prices jumped more than two per cent to a four-year high on Monday after Saudi Arabia and Russian Federation ruled out any immediate increase in production. "We are not going to put up with it - these terrible prices - much longer".

Then, yesterday he told the United Nations General Assembly that the Organization of the Petroleum Exporting Countries is "ripping off the rest of the world" by pushing up prices.

We expect Indian refiners will either have to significantly reduce or completely stop importing crude oil from Iran over the next month or so.

U.S. Energy Secretary Rick Perry speaks during joint press conference on September 18 in Bucharest, Romania.

Less than two hours later, Bloomberg News reported that India isn't planning to buy any crude oil from Iran in November, costing Tehran a major customer as US sanctions take effect.

"A renewed rise in Cushing, Oklahoma, inventories and a rise in domestic crude oil production added to the bearish tone of the report", said John Kilduff, a partner at Again Capital in NY.

OPEC leader Saudi Arabia and its biggest oil-producer ally, Russia, on Sunday rebuffed a demand from Trump for moves to cool the market.

Iranian crude is usually sold at a discount of up to $2-4 per barrel to other Middle Eastern crude oil grades. "But the "unwillingness" of OPEC and its partners to declare their intention to ramp up production in their effort to replace Iranian barrels all of a sudden produced a very tight supply-demand balance for the fourth quarter of this year", said Tamas Varga, analyst at brokerage PVM Oil Associates.

The so-called "Opec+" group, which includes Russia, Oman and Kazakhstan, met over the weekend to discuss a possible increase in crude output, but the group was in no rush to do so. This puts pressure on other nations to lessen crude imports from Iran as well.

Richard Robinson, manager of the Ashburton Global Energy Fund, said higher prices are nearly certainly on the cards.

Another added: "There are more demand threats next year compared to supply threats".

Crude prices have also been affected by unexpected disruptions in several countries, including Libya, Nigeria and Venezuela.

Share

Advertisement

Related Posts

Google's official Pixel 3 and Pixel 3 XL press renders just leaked
But Google might have come up with a neat new feature that could help shift the focus away from the notch to and onto the screen. Thanks to this early leak , you won't need to wait for the launch of the two devices in a few weeks to enjoy some new wallpapers.

Tesla builds own vehicle carriers to aid delivery
In retrospect, this comes as good news especially to those who have always been waiting to get hold of their new Tesla. Musk clarified that this would not affect availability at Tesla's fix centres, the report said.

Ryan Giggs says Liverpool have their strongest ever Premier League XI
He is getting better and better he is doing the right things at the right moment'. And they also know how to win the league.

Debbie Ramirez tweets in solidarity with Christine Blasey Ford
He unequivocally denied all of the allegations, testifying that there was not a kernel of truth in any of these allegations. Ford said Kavanaugh's friend, Mark Judge , was in the room during the attack and that the two were laughing at her.

Four GOP Governors Want Senate to Delay Kavanaugh Vote
He vowed to continue his effort to join the high court, to which President Donald Trump nominated him in July. She said it was her attackers' laughs. "Two friends having a really good time with one another", she replied.

Revamp of Google Chrome web browser risks new European Union scrutiny
Chrome is the most widely used browser in the world with a almost 60 percent market share globally and about 50 percent in the US. In addition to the browser's own login feature, you can also sign in via the Google web page, as you would in any browser.

Fed Raises Interest Rates for Third Time in 2018, Upgrades Economic Outlook
USA companies worry about "disruption of supply chains, materials, cost increases, and loss of markets and things like that". Fed Chairman Jerome Powell is scheduled to speak at press conference at 2:30 p.m.

Key passages from Julie Swetnick's declaration alleging sexual misconduct against Brett Kavanaugh
Avenatti also represents Stormy Daniels, who alleges she was paid to keep a sexual relationship with Trump quiet. "I am terrified. I am here because i believe it is my civic duty to tell you what happened to me while Brett Kavanaugh and I were in high school".

Trump accuses China of election meddling
The president who frequently has said Chinese president Xi Jinping is a friend appeared to change that view. The U.S.' exchange with China comes as a trade war between the two nations intensified.

Brett Kavanaugh accuser Christine Ford testifies before Senate hearing
Avenatti said Wednesday, July 4, 2018, he doesn't owe any money personally and called the court filing "politically motivated". He unequivocally denied all of the allegations, testifying that there was not a kernel of truth in any of these allegations.

© 2015 . All Rights reserved.