U.S. considers sanction waivers on countries reducing imports of Iranian oil

U.S. considers sanction waivers on countries reducing imports of Iranian oil

A second round, forthcoming on November 4, will be targeting Iran's oil sales and its Central Bank.

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

India's oil and natural gas minister, Dharmendra Pradhan, confirmed Monday that two Indian oil companies would be buying Iranian crude in November.

On Monday, Iran's Oil Minister Bijan Zanganeh said a claim by Saudi Crown Prince Mohammed bin Salman that the Kingdom could replace Iran's crude exports was "nonsense".

Further weighing on oil prices was "chatter that Saudi Arabia has replaced all of Iran's lost oil", said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

India would lift 9 million barrels of Iranian oil in November, equivalent to about 300,0000 barrels per day (bpd), compared to an average of about 658,000 bpd from April to August, according to data available with Reuters. Iran says it has abided by the 2015 nuclear deal, which was struck with five other world powers, besides the United States.

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.

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Prince Mohammed told Bloomberg on Friday that the kingdom had met its promise to Washington to make up for Iranian oil supplies lost through U.S. sanctions, reimposed when the United States exited a 2015 nuclear deal between Tehran and six powers.

Oil prices fell on Monday after a U.S. government official said Washington was considering granting waivers to its sanctions against Iran's crude exports next month, and as Saudi Arabia was said to be replacing any potential shortfall from Iran.

"India is continuing with its relationship with both its key energy partners Iran and the U.S.", a second source said.

On Monday, Gulf of Mexico oil companies shut down 19 percent of oil production as Hurricane Michael moved toward eastern Gulf states including Florida. Also, subsidised domestic cooking gas prices have been increased by Rs 2.89 per 14.2 kg cylinder to Rs 502.40, an all-time high.

On the last week's excise duty and fuel price cut, the minister said these prices will not be deregulated.

"In effect, the government has asked the OMCs to sell petrol and diesel at subsidized prices, for which they will not be reimbursed", the report said.

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