Published: Mon, October 08, 2018
Money | By Armando Alvarado

India wants USA sanctions waiver after cutting Iran oil imports

India wants USA sanctions waiver after cutting Iran oil imports

Government was discussing its options to buy Iranian oil with all authorities, said Mr Pradhan.

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.

The Indian orders have reportedly been placed by Indian Oil Corp (IOC) and Mangalore Refinery and Petrochemicals Ltd (MRPL).

Ralph Leszczynski, Banchero Costa's head of research in Singapore, tells TradeWinds: " The US sanctions on Iranian oil imports are strictly unilateral, as they have been actively resisted by other buyers of Iranian oil.

White House National Security Advisor John Bolton said only last week that the administration wanted to avoid all waivers and see Iranian oil and gas exports entirely staunched, but that it might not be able to achieve that aim.

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.

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It should also be remembered that by this time in 2008, the job market had been in a six-digit monthly free-fall for half a year. The September Employment Report was solid despite slower than expected job growth.

Speaking at the energy forum in New Delhi on Monday, Pradhan said India did not know whether it would receive a waiver from Washington's sanctions. She said the sanctions that would come into force on 4 November were created to bring Tehran to book and not to penalise India, which meets 83% of its crude oil requirements from outside.

Iran has warned that if it can not sell its oil due to United States pressure, then no other regional country will be allowed to do so either, threatening to block the Strait of Hormuz.

Opec accounts for around 40% of the global production.

The news of India's continued importation of Iranian crude had a positive effect on oil prices, with Brent crude down 1.6% to $82.79 at the time of writing on Monday morning.

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. Worldwide crude oil prices had reached a record high of $147 per barrel in July 2009. To this, taxes at the central and state levels are added, besides dealers' commission, to arrive at the retail price. It added that the effective reversal of fuel price deregulation would also constrain future private sector investments in the sector.

Iran's condensate exports fell by 46 percent over the first six months of the Iranian year, from March to September, local news agency Isna reported, citing customs data.

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