Thursday, 18 October, 2018

US Actively Considering Waivers on Iran Oil Sanctions

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Nellie Chapman | 08 October, 2018, 16:55

US President Donald Trump's administration is considering sanction waivers for countries that are reducing their imports of Iranian oil, a US government official said on Friday.

"Likely, India and Iran will agree to use Rupee payments instead of United States dollar payments, something already tried between 2013 and 2015, with Iran then using Rupees to import food, medicines and other commodities from India", said Leszczynski.

Crude oil futures slipped by 1.44 percent to Rs 5,466 per barrel Monday, as traders cut exposure at the existing levels amid a weak trend in the Asian trade.

Oil dropped below $83 a barrel on Monday, pressured by expectations that some Iranian oil exports will keep flowing after the USA reimposes sanctions, easing a strain on supplies.

US crude was down $1.14 at $73.20.

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.

US Secretary of State Mike Pompeo said last month that the White House would only consider waivers for Iran's oil buyers if they vowed to eventually bring their imports to zero. "Having said that, it may well be that we are already in the most supportive phase coming from this change and the effect will soon begin to ease".

Oil also dropped as investors focused on rising output from other producers, such as top exporter Saudi Arabia, to compensate for lower Iranian supplies which have fallen further in October according to export data.

Iran's Oil Minister Bijan Zanganeh has dismissed as "nonsense" claims by the Saudi crown prince that Saudi Arabia can replace sanctions-hit Iranian oil in the market.

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.

"Any country that makes such claims. just wants to display its support for the US sanctions against Iran", Zanganeh was quoted as saying. "Iran's oil can not be replaced by Saudi Arabia nor any other country", Zanganeh was quoted as saying on his ministry's website.

Oil rallied to the highest in nearly four years earlier this month on concerns that OPEC and its allies aren't raising output quickly enough to make up for the squeeze on Iranian shipments.