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.
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.
Indian Oil Corp will lift 6 million barrels of Iranian oil and Mangalore Refinery and Petrochemicals another 3 million barrels, the source said.
On the fall of crude price, oil watchers likened the cause on expectations that some Iranian oil exports will keep flowing despite USA sanctions, easing a strain on supplies. He said that India has its own energy requirements to fulfil.
The US withdrew from a deal on Iran's nuclear program in May and will individually impose sanctions on Iran's crude oil consumers on November 4.
Brent crude was down 7 cents at $83.84 a barrel by 0020 GMT.
Alongside potential waivers on Iranian sanctions, oil supply is seemingly back on the rise with Libya recently boosting oil production to 1.25mbpd (200kbpd more than the September average).
Traders said ongoing concerns that the U.S. 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.
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.
Reeling from high oil prices, India has also reminded Saudi Arabia of the promise by the Organization of the Petroleum Exporting Countries (Opec) of increasing production by an additional 1 million barrels per day, said Pradhan.
He has dismissed claims by the Saudi crown prince as "nonsense". Global crude oil prices had reached a record high of $147 per barrel in July 2009.
"The step taken by the government reverses the price deregulation of diesel and petrol and increases the likelihood that the government may ask upstream companies Oil and Natural Gas Corporation (Baa1 stable) and Oil India Limited (Baa2 stable) to share the fuel subsidy burden", the report added. "The basic point is that they are all government companies", Pradhan said, according to The Hindu.