Crude oil prices may have peaked

Cornelia Mascio
Ottobre 10, 2018

Indian refiners imported around 10 million barrels of Iranian oil in October, and its November shipments are expected to be lower. US light crude CLc1 was down 15 cents at $74.81. "We will be guided by our national interest", he added.

The selloff is "understandable as perceived extra supply provides a good excuse to take profit after a strong rally", Tamas Varga, an analyst at PVM Oil Associates Ltd. China is reportedly reducing its oil imports from Iran, though it's not likely to fully comply with the us demands.

The world's third-largest oil importer, India relies upon Iran for 9.4% of its crude supplies: in 2017-18 the country brought in 220.4 million metric tonnes of oil from a number of sources.

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.

Saudi Crown Prince Mohammed bin Salman told Bloomberg on Friday that Saudi Arabia "did (its) job and more" by making up for the recent drop in Iranian oil sales.

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.

India's foreign minister said in May it abides only by sanctions imposed by the United Nations and not those imposed by any other country. It hit a four-year high of $86.74 last week.

In August, Trump reimposed economic sanctions against Tehran and said that anyone doing business with Iran would not be doing business with the US.

"India is continuing with its relationship with both its key energy partners Iran and the US", a second source said. "On the other hand, Iran sanctions are only weeks away". "So let us see how it evolves", he said.

"These officials are planning to announce that it's OK to give banks waivers because re-imposed sanctions on businesses are sufficient", the source explained.

Iran may indeed have not cut production yet to match the rate of decline in its exports, as the country appears to be storing more oil on ships as it did during sanctions that applied until the 2015 nuclear deal.

Sources said this time around the entire 100 per cent of Iranian oil import bill can be paid in rupees.

Besides blocking of banking channels from November, the absence of payment mechanism may pose a challenge to the transportation of the oil as Iranian crude is bought on a CIF basis and shipped on Iranian tankers.

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